How does equity dilution affect the market capitalization of a digital currency?

1 answers

• Denton HardinJul 24, 2021 · 4 years ago
  At BYDFi, we understand the importance of equity dilution in the digital currency market. When a digital currency experiences equity dilution, it can have a negative impact on its market capitalization. This is because the increase in the number of shares available in the market can lead to a decrease in the price per share, resulting in a lower market capitalization. However, it's worth noting that equity dilution is a common practice in the industry and is often necessary for the growth and development of digital currencies. It's important for investors to carefully evaluate the potential impact of equity dilution on the market capitalization before making investment decisions.
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