Capital Funds

Capital funds is considered to be the money that is provided in the form of equity or debt for operating a company. Traditionally, a company’s capital structure could be determined by reviewing the shareholder equity and liabilities listed on the balance sheet of the company. However, with the introduction of the decentralized autonomous organizations (DAOs) and tokens, a company might not require traditional capital funds but can instead issue tokens for operating in the long run. The global regulators have clearly stated that the tokens are not securities meaning that they lack the rights and protection under the securities act.