# kaal:claim:3117224-010

**Claim.** 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.

**Type.** failure  **Support.** argued

**Source quote.**

> 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, page 4

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

**Verify.** sha256 of source PDF `83e9ccb9219a217d9fcfc5c098b897229ee7cf85623bee3ae22d2e986548466b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202018%20-%20Initial%20Coin%20Offerings%20The%20Top%2025%20Jurisdictions%20and%20Their%20Comparative%20Regulatory%20Responses.pdf

**Failure mode.** no-anti-dilution-protection  (family: investor-protection-gap)

**Topics.** tokenomics

**Keywords.** dilution, investor-protection, token-holders, preemptive-rights

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3067615-023
- extends: https://wulfkaal.github.io/claims/3067615-019

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.