Can all my coins/tokens be totally worthless over night?
source: https://de.depositphotos.com/132022824/stock-photo-expropriation-legal-concept.html
This is a question that I have asked myself several times. And I have not found a satifying answer yet.
What happens if any company behind a coin or token decides to not continue/end the project, delist it from exchange or whatever?
What rights do we have as token holders? As far as I know we have no rights. That makes me worry a little bit from time to time. I know, never invest what you cannot afford to lose. But that is not the point.
When you buy stocks you buy shares of that company. You buy voting rights (OK, not always). Companies issuing shares have to follow certain rules like they have to inform shareholders about certain circumstances that could influence the share price or they will be liable for damages caused by refraining from doing so.
And what happens if lets say the board of Ripple (just philosophying) decides to sell the company Ripple to Google and then Google decides not to use XRP any longer because Google has its own coin ceated? I am just playing here with my thoughts.
People love crypto for being independent. But you cannot have indepency without some risks.
Just my thoughts for today.
Thankfully unlike ripple most cryptocurrencies are built to be decentralized and open sourced. Even if the original company or founders decide to abandon ship, the distributed ledger will still be in place and can't be erased. Prices can always change with an accompanying change in demand. As an investor this is something you should always keep in mind. If a project is used in too specific of a niche or business, it makes it a riskier investment.