# kaal:claim:3606663-001

**Claim.** Equity funding and token funding are substitutes: because equity investment in a blockchain startup makes issuing a digital currency both less likely and less necessary as a funding source, a market shift back toward equity funding should shrink the total volume of digital currencies issued.

**Type.** mechanism  **Support.** argued

**Holds when.**

- digital asset and blockchain startups
- token issuance treated primarily as a funding mechanism

**Source quote.**

> Because equity investments in blockchain startups make it less likely and less necessary for the respective startups to issue digital currencies, at least as a funding source, the market for digital currencies and the total volume of issued digital currencies is likely to recede

**From.** Kaal, *Digital Asset Market Evolution* (2020), I. Introduction, page 6

**Cite as.** Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663

**Verify.** sha256 of source PDF `d1d4a15a293b715bb6a5a32e689f59c3a1587915039ba9a1cf4eeb8ee2a1e57c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202020%20-%20Digital%20Asset%20Market%20Evolution.pdf

**Topics.** securities-law, economics, institutional-design

**Keywords.** funding-sources, ico, equity-funding, digital-assets, market-evolution

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