How do debentures differ from other forms of fundraising in the crypto space?
Romantiya DunnyDec 17, 2021 · 3 years ago3 answers
In the crypto space, what are the key differences between debentures and other forms of fundraising?
3 answers
- Dec 17, 2021 · 3 years agoDebentures in the crypto space are a type of fundraising where investors lend money to a project or company in exchange for fixed interest payments and the return of the principal amount at maturity. Unlike other forms of fundraising, such as initial coin offerings (ICOs) or token sales, debentures do not involve the issuance of tokens or coins. Instead, they rely on traditional debt instruments to raise funds. This can provide investors with a more stable and predictable investment option in the volatile crypto market.
- Dec 17, 2021 · 3 years agoWhen it comes to fundraising in the crypto space, debentures offer a more traditional approach compared to other methods like ICOs or token sales. Instead of issuing tokens or coins, debentures involve borrowing money from investors and promising fixed interest payments and repayment of the principal amount at a later date. This can be attractive to investors who prefer a more secure and regulated investment option in the crypto industry.
- Dec 17, 2021 · 3 years agoIn the crypto space, debentures stand out from other forms of fundraising due to their reliance on traditional debt instruments. While ICOs and token sales involve the creation and distribution of digital assets, debentures focus on borrowing money from investors and providing them with fixed interest payments. This approach offers a more familiar and regulated investment structure, which can be appealing to investors who are cautious about the risks associated with token-based fundraising models.
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