How Activist Investors Can Help the Crypto Industry Mature
This is less of a problem in traditional finance, where debt and equity markets have clearly defined stakeholder structures for investor recourse, resulting in governance systems that protect investor interests and prevent rogue executives from running amok with a company. That said, many investors incorrectly believe that owning debt or equity ensures that you have direct control over a company’s assets.
So where do you find checks and balances in the digital assets industry when token issuance is not regulated and legal precedent has not yet been set for token holders’ rights? Recently, Arca has played the role of an “activist investor” in the digital assets space by submitting a proposal to Gnosis after uncovering what we consider to be gross mismanagement of resources, a lack of internal controls and fiduciary responsibility, and an un-communicated roadmap that strays away from their original white paper.
