We analyze real economic consequences of financing with (mispriced) utility tokens that give access to consumption utility and are traded on a secondary market. Projects can be financed by equity or by selling tokens. In a baseline analysis, efficient projects prefer equity, while inefficient...

We analyze the economic consequences of financing with utility tokens that give access to consumption utility and are traded on a secondary market. Projects can be financed by selling equity or tokens. In a baseline analysis, efficient projects prefer equity, while inefficient projects prefer...