kaal:claim:3117224-010

ICO investors have no preemptive rights or other anti-dilution protections, so they may be diluted if promoters later issue more reserve tokens to additional investors.

Source quote, verbatim

ICO investors have no preemptive rights or other anti- dilution protections. If the promoters decide to issue more reserve tokens to additional investors, the ICO investors may be diluted in the future.

From

Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018), II. Regulatory Concerns, p. 4
https://ssrn.com/abstract=3117224 · source PDF

Cite as

Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224

Classification

failuresupport: arguedfailure: no-anti-dilution-protectionfamily: investor-protection-gaptokenomics

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