On bankruptcy or termination of the platform, token holders typically have no liquidity preference and no recourse at all once debt holders and outside creditors are satisfied, so unlike a venture capital seed investor with at least a simple liquidity preference, they typically lose everything they invested.
Source quote, verbatim
Again, by contrast, token holders typically lose everything they invested as they have no liquidity preference at all.
From
Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017), IV.4 No Liquidity Preference, p. 19 https://ssrn.com/abstract=3067615 · source PDF
Cite as
Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615
Holds when
bankruptcy or termination of the promoter's business or platform
Classification
failuresupport: arguedfailure: No liquidity preference in insolvencyfamily: investor-protection-gapdefisystemic-riskinnovationrisk-and-incentives
Related claims
restated_bykaal:claim:3117224-012 Token holders typically receive no liquidity preference protecting them if the platform they invested in goes ...
Verify
The quote above is an exact substring of the source PDF, whose sha256 is 164ce15b9eb1e8847ebcb073f5b23a96b4974ad0308d77469a9455d4a1ebeb38. Extraction method: pdf-text-layer. Attestation record: colloquium/attestations/f0f16c79ec967717...json Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3067615-028.md | sha256sum