Last thing I’ll say on the Venice Grass token debate today.
It appears both teams are well-intentioned and are building good businesses.
But the current dual token equity paradigm is, at best, too risky for the largest pools of capital to underwrite.
Fundamentally, the structure creates a misalignment between token holders and equity holders. Which is why crypto VCs will always require founders to give them both.
That misalignment is one of the biggest reasons a massive amount of liquidity and institutional capital has not entered liquid crypto markets.
Why did the U.S.A become home to the largest capital markets during the 20th century?
A primary reason was that investors globally knew when they bought a US-sourced asset, there was rule of law protecting ownership and ensuring value accrued to the asset they held.
Until crypto resolves the dual-structure problem, by choosing either token or equity as the singular economic unit of a business, the crypto industry will be stunted.
