# Cost of capital

`kaal:entity:cost-of-capital`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `cost-of-capital`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

3 claims across 3 works, 2019 to 2020.

**2019**

- [3396522-011](https://wulfkaal.github.io/claims/3396522-011) [mechanism/argued] -- The minimum price of a fiat backed stable cryptocurrency is the interest rate of the fiat currency it is pegged to, because the collateral must sit liquid rather than earn a return.
  > Therefore, the price tag of fiat-backed tokens is, at a minimum, the interest rate of the pegged fiat currency.
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522
- [3402701-003](https://wulfkaal.github.io/claims/3402701-003) [mechanism/argued] -- The minimum cost of a fiat-backed token equals the interest rate of the pegged fiat currency, because the backing capital must sit idle and liquid.
  > Therefore, the price tag of fiat-backed tokens is, at a minimum, the interest rate of the pegged fiat currency
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

**2020**

- [3606663-007](https://wulfkaal.github.io/claims/3606663-007) [failure/argued] *(failure mode)* -- Once the staggered private sale discounts of up to fifty percent are counted as a cost of capital, the cost structure of an ICO is arguably significantly higher than that of an IPO, notwithstanding the ICO's lower legal and offering expenses.
  > Considering these steep discounts to incentivize earliest possible investments, the cost structure of ICOs is arguably significantly higher than the cost structure of an IPO.
  Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/cost-of-capital.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.