Which type of shares, preferred or common, is more commonly used in cryptocurrency initial coin offerings (ICOs)?

1 answers

• Hobbs StraussJan 07, 2025 · 7 months ago
  In cryptocurrency initial coin offerings (ICOs), the choice between preferred and common shares depends on the project and its objectives. While both types of shares can be used, preferred shares are generally more commonly issued in ICOs. Preferred shares offer certain advantages to investors, such as priority in receiving dividends and liquidation preferences. They may also come with voting rights, allowing investors to have a say in important decisions. On the other hand, common shares typically have fewer rights and benefits. They may not have priority in receiving dividends or liquidation preferences, and their voting rights may be limited. Ultimately, the decision between preferred and common shares in ICOs is influenced by the project's specific needs and the preferences of the founders and investors involved.
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