What are the dilutable shares in the context of cryptocurrency?

3 answers

• Dec 18, 2021 · 3 years ago
  Dilutable shares in the context of cryptocurrency refer to the shares that can be further issued or created, which may result in a decrease in the value of existing shares. When a cryptocurrency project decides to issue more shares, it dilutes the ownership percentage of existing shareholders. This means that the value of each individual share may decrease as the total number of shares increases. Investors need to be aware of dilutable shares as it can impact their ownership stake and potential returns. It is important to carefully evaluate the dilution risk before investing in a cryptocurrency project.
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• Dec 18, 2021 · 3 years ago
  Dilutable shares in cryptocurrency can be compared to a pizza. Imagine you have a whole pizza to yourself, but suddenly more slices are added to the pizza. Although you still have the same number of slices, your portion of the pizza becomes smaller. Similarly, when more shares are issued in a cryptocurrency project, the existing shareholders' ownership percentage decreases. This dilution can affect the overall value of the cryptocurrency, as it may lead to a decrease in demand and confidence from investors.
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• Dec 18, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that dilutable shares in the context of cryptocurrency can have a significant impact on investors. When a cryptocurrency project decides to issue more shares, it can dilute the ownership stake of existing shareholders. This means that investors may have a smaller percentage of ownership in the project, which can affect their potential returns. It is important for investors to carefully consider the dilution risk and evaluate the project's plans for issuing additional shares before making investment decisions.
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