Tokens are frequently issued to employees and advisors as deferred consideration for services. Fair Value of this expense on your income statement requires valuation.
Crypto-Asset funds are often issued warrants for tokens. This can trigger valuation needs under ASC 820 as well as LP reporting.
Tax implications can exist for both the issuer and receiver from the issuance of tokens. Altering your legal entity structure? This could trigger transfer pricing considerations or the valuation of illiquid tokens being transferred among entities.
Investing in ICOs? Crypto-assets could contain poor disclosures in relation to the assumptions used to price the tokens issued, often resulting in questionable valuations.
The selection of valuation model depends on each project's specific circumstances.
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