Entrepreneurial Financing with Crypto-tokens: Risks and their valuation.

Abstract

This paper aims to analyze the evolution and financial impact of Crypto-tokens (defined as cryptocurrencies and crypto-assets). The research method is statistical-descriptive and theoretical. Terms related to this technology are conceptualized: crypto-token, crypto-currency, alternative currency (altcoin) and meta-cryptocurrency (metacoin). The originality of the present work consists in describing and analyzing the Process of Initial Coin Offering (ICO) and the generation of business crypto-assets (instruments that do not represent the share capital of the company, but that can confer a right of ownership or royalties on the profits of a project or company), key issues for the development of the entrepreneurship of initial firms (start-ups) and their financing. Our findings offer investors as entrepreneurs an expand understanding of these decision-making tools, revealing the opportunities and risks they represent and laying the groundwork for their analysis and valuation.