Opinion: Blockchain's future may replace Nasdaq as the new equity vehicle

BlockBeats News, January 20th, former Coinbase CTO Balaji wrote that many startups in the future may explore raising funds by issuing tokens as explicit cryptographic equity. From a technical perspective, representing equity on the blockchain has clear advantages, as investors can hold it in their wallets, query pricing via APIs, and track it on a blockchain explorer.

From a financial perspective, the global crypto investor market has obvious advantages compared to any local market in a city. However, this does not mean that short-term behavior can be pursued. Founders can (and should) implement lock-up provisions, drag-along rights, tag-along rights, and other mechanisms. These agreements help align the long-term interests of investors and founders.

Perhaps we are finally entering the long-overdue era of cryptographic equity. This is also one of the downsides of regulation through enforcement. What the SEC has done is merely to attack the good guys rather than establish clear rules. Perhaps this situation is beyond their capabilities, and actual regulation may fall on the shoulders of cryptocurrency exchanges.