Token Financing vs. Equity and Crowdfunding

Résumé

We present a stylized model of three entrepreneurial financing methods based on two tradeoffs. First, token financing and crowdfunding reveal consumer-investors’ demand for the product prior to investment, but upfront purchase weakens the entrepreneur’s incentive to deliver. Second, token financing permits a bubble component in token value, but reduces consumer surplus.

Mots-clés

financement participatif, financement des entreprises, offre initiale de jetons, réglementation des jetons, jeton utilitaire; utility token;

Codes JEL

G32: Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill
G38: Government Policy and Regulation
L26: Entrepreneurship