How does owning cryptocurrency affect cap tables for startups?

3 answers

• Dec 26, 2021 · 3 years ago
  Owning cryptocurrency can have significant implications for the cap tables of startups. When a startup issues equity to investors or employees, it needs to consider the value of cryptocurrency holdings. Cryptocurrency holdings can be treated as assets and included in the valuation of the company. This means that the ownership percentage of existing shareholders may be diluted if the value of the cryptocurrency increases. Additionally, startups may need to develop specific policies and procedures for handling cryptocurrency holdings and their impact on cap tables.
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• Dec 26, 2021 · 3 years ago
  Having cryptocurrency in a startup's cap table can introduce complexities. The value of cryptocurrency is highly volatile, which means that the ownership stakes of shareholders can fluctuate dramatically. This can make it challenging to accurately determine the equity distribution and valuation of the startup. Startups may need to regularly update their cap tables to reflect the changing value of cryptocurrency holdings. It's important for startups to work closely with legal and financial advisors to navigate the complexities of incorporating cryptocurrency into their cap tables.
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• Dec 26, 2021 · 3 years ago
  As a representative of BYDFi, I can say that owning cryptocurrency can have both positive and negative effects on cap tables for startups. On one hand, if the value of the cryptocurrency increases significantly, it can lead to a higher valuation for the startup and potentially attract more investors. On the other hand, the volatility of cryptocurrency can introduce uncertainty and make it difficult to accurately determine the ownership stakes of shareholders. Startups should carefully consider the potential risks and benefits of including cryptocurrency in their cap tables.
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