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What are the potential risks of using flip-over poison pill in the cryptocurrency industry?

avatarCash HejlesenNov 26, 2021 · 3 years ago1 answers

What are the potential risks associated with the implementation of flip-over poison pill in the cryptocurrency industry? How can this strategy affect the market and investors?

What are the potential risks of using flip-over poison pill in the cryptocurrency industry?

1 answers

  • avatarNov 26, 2021 · 3 years ago
    As a third-party expert, I can provide an objective perspective on the potential risks of using flip-over poison pill in the cryptocurrency industry. While this strategy can be effective in deterring hostile takeovers, it can also have negative implications. One major risk is the potential for dilution of existing shareholders' ownership and control. This can lead to a loss of influence and potentially impact the company's decision-making process. Additionally, flip-over poison pill can create uncertainty in the market, which can result in increased volatility and potential negative effects on the value of the cryptocurrency. It is crucial for companies to carefully evaluate the potential risks and benefits before implementing this strategy.