Author: Flavien Charlon 2014-04-07 14:00:20
Published on: 2014-04-07T14:00:20+00:00
The discussion revolves around the idea of whether padding with colored coins is important or not. Flavien Charlon explained that if the company uses colored coins, then those coins become part of the capital of the company and can be recovered by uncoloring the shares. He believes that it is an investment and not an expense. Jorge Timón disagrees and gives the example of printing shares on gold plates; he argues that gold on the plates is not considered as part of the capital of the company. Jorge further explains that if the price of a share goes low enough, one could buy a share of the company, melt the gold plate, and sell it for a profit. In such cases, assuming the gold is part of the capital of the company, the cheapest a share can be is the price of the gold on which the stock certificate is printed. Therefore, Jorge thinks that the importance of padding with colored coins is overblown.
Updated on: 2023-06-08T18:32:26.459421+00:00