How does dilution affect the value of a cryptocurrency startup?

1 answers

• Nov 26, 2021 · 3 years ago
  At BYDFi, we understand the impact of dilution on the value of a cryptocurrency startup. Dilution can lead to a decrease in the value of a startup's tokens, as it increases the supply in the market. This can result in a loss of investor confidence and a decline in the token's price. However, dilution can also be necessary for a startup's growth and expansion. By issuing more tokens, a startup can raise funds to develop new features, expand its user base, or enter new markets. It's a delicate balance between dilution and growth, and startups need to carefully manage their token supply to maintain a healthy ecosystem.
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