Hello. I'm look for advice on security tokens on a hypothetical scenario.
Let's say I have a startup in a country where dual shares are not allowed. Despite debate between the government, it seems that dual shares will not be a thing anytime. So, I'm pretty much stuck with losing control of my company over a short period of time.
Away around this is by issuing security tokens. That way I own 100% of the company's shares while issuing investors and employees security tokens in liu of actual stock.
Here's the thing, the value of security tokens are reflected from the price of the actual stock. With me holding 100% of the company's shares, how does this affect the value of the company.
For example, An investor wants to invest $5 million into my startup in exchange for 10% which would put it at a $50 million valuation. However, the 10% was regarding security tokens as I own 100% of the stock. So how would this affect the valuation of the company since I'm holding the shares and the value of the tokens are based on the stock?
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