Utility vs. Security Token: How Classification Affects Valuation
Token labels can be misleading. This article explains how utility, security, and governance token classifications affect valuation methods, financial reporting, tax treatment, and audit documentation. It covers the Howey test, ASC 350-60, ASC 820 fair value measurement, IRC Section 83, token grants, DLOM, and CFO documentation requirements.
How Staking Rewards Affect Token Value: Tax, Reporting, and Valuation Implications
This article explains how staking rewards affect tax reporting, financial reporting, and token valuation. It covers Rev. Rul. 2023-14, dominion and control, locked rewards, liquid staking tokens, ASC 350-60, ASU 2023-08, emission mechanics, dilution-adjusted yield, and audit-ready documentation.
Token Seed Round Valuation: What Founders Need to Know Before Granting Tokens
This article explains why founders should complete an independent token valuation before issuing seed-stage token grants. It covers restricted tokens, 83(b) election timing, SAFT and SAFE-plus-warrant pricing, DLOM, ASC 820 differences, and the diligence risks that can arise when early token grants are undocumented.
Token Valuation for Tax Reporting: What the IRS Requires (and What It Doesn't Say)
This article explains how U.S. taxpayers and companies should think about token valuation for tax reporting. It covers IRS fair market value requirements, taxable events, compensation tokens, staking rewards, hard forks, §83(b) elections, and the gap in guidance for illiquid or pre-launch tokens.
How Token Allocation Impacts Founder Wealth: A Strategic Framework
This article explains how crypto founders should evaluate token allocation beyond a single percentage. It covers founder allocation ranges, equity-to-token alignment, vesting, dilution, liquidity, securities considerations, and the independent modeling needed to support defensible token economics.
What is Token Valuation? Methods, Frameworks, and New Accounting Requirements
Token valuation now requires more than pulling a price from an exchange. This article explains how companies and funds should evaluate crypto assets under ASC 350-60 and ASC 820, including scope criteria, principal market selection, restriction analysis, valuation methods, and the documentation needed to support fair value conclusions.