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Research Recommends Transparency Acting As Key to Utility-Based Crypto Projects


According to fintech researchers, the size of the information offered to stakeholders, determines the price of crypto on the secondary market.

Utility token issuers must contribute main levels of clarity to the public before listing on trades as per suggestions offered by researchers. Resulting to boost stakeholder belief and fascinate new market parties. Acts as key to crypto adoption, according to Duke University School of Law’s FinReg Blog on June 25.

Revelation of information act as a key for crypto achievement

According to the blog post, authors Nicholas J. Krapels and Dan Liebau singled out the bulk of crypto industry professionals who don’t speculate utility token issuers reveal adequate data to their stakeholders. 

Krapels and Liebau traced seven  suggestions for data revelation that prevails relevant for utility token issuers, buyers, mediators, and controllers alike. 

The suggestions correlate to financial and non-financial circumstances. Financials  encompass token issuer information, initial and current cash positions, as well as token treasury information while Non-financial information encompasses contact information, project progress updates, documentation and open-source software repositories. 

Crypto price and data correlation

The authors established the post on a detailed manuscript and formerly circulated on scholarly research SSRN. The portion comprises short case surveys on Tezos, Hedera, Algorand, and The Chain that highlight outstanding behaviour in the room of information revelation. 

Nicholas J.Krapels, Adjunct Professor in Strategy and Entrepreneurship at SKEMA Business School, China and Dan Liebau Founding Director at Lightbulb Capital and Affiliate Faculty Member at Singapore Management University notified Bitcoin world that: 

“Some would still say that “insider information” is the only way to profit in the crypto markets. Others want to propel the industry forward and be treated fairly. If you’re looking for a way to promote widespread adoption of blockchain ecosystems, this is the kind of advocacy we need.”

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.