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.
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.