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Filecoin Suspends ICO After Raising $186M in One Hour

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Re: Filecoin Suspends ICO After Raising $186M in One Hour

#131

Post by DanBlake »

noway421 wrote: post #31

Their Filecoin Token Sale Economics says that 10% of all tokens is allocated to investors. Not sure how much they sold, but even if it's almost all out, does it make it a $1.8bn capitalisation?

There is also 52 million they sold in a 'pre-sale' I dont think is included here. Yes, that would mean they have ~litecoin valuation currently.

Re: Filecoin Suspends ICO After Raising $186M in One Hour

#132

Post by al2o3cr »

sktrdie wrote: post #77

What's important to note about ICOs is not necessarily whether the idea is actually practical and that it will work. What matters right now is whether the idea can stir our intellect and get the crowds excited. This is because behind the idea there's a new token which value is completely driven by the excitement of the crowds (it's pure speculation). If I invest N amount of money in a token which gets people excited,…

    ICOs are a new breed in economy
Pumping up worthless crud with tons of PR to get suckers, er "investors" to "get in now" is an old old old scam. Adding "with cryptocurrency" onto the end of it doesn't make it new.

Re: Filecoin Suspends ICO After Raising $186M in One Hour

#135

Post by krrrh »

nicpottier wrote: post #127
sktrdie wrote: post #77

What's important to note about ICOs is not necessarily whether the idea is actually practical and that it will work. What matters right now is whether the idea can stir our intellect and get the crowds excited. This is because behind the idea there's a new token which value is completely driven by the excitement of the crowds (it's pure speculation). If I invest N amount of money in a token which gets people excited,…

While by and large I agree about most ICOs, I think the value proposition is a lot clearer for something like Filecoin. Does that necessarily mean it is worth what it is valued at? No, but comparing the IPFS folks with total snake oil is a bit unfair.

Sure, but it's kind of like saying that FTP looked like it would be a useful protocol in 1985, and an early draft of RFC 959 should have been adequate to raise gobs of money. In the end FTP added a lot of value to the internet, but it doesn't mean that the folks who wrote the reference implementations would have known what to do with the equivalent of $1B.

Re: Filecoin Suspends ICO After Raising $186M in One Hour

#136

Post by Cakez0r »

sktrdie wrote: post #77

What's important to note about ICOs is not necessarily whether the idea is actually practical and that it will work. What matters right now is whether the idea can stir our intellect and get the crowds excited. This is because behind the idea there's a new token which value is completely driven by the excitement of the crowds (it's pure speculation). If I invest N amount of money in a token which gets people excited,…

> People are not investing hoping for the project to be developed - they're investing because they know others will as well, which will drive the prices up.

I found out recently that this is called the Greater Fool Theory - https://en.wikipedia.org/wiki/Greater_fool_theory

Re: Filecoin Suspends ICO After Raising $186M in One Hour

#137

Post by Taek »

nicpottier wrote: post #127
sktrdie wrote: post #77

What's important to note about ICOs is not necessarily whether the idea is actually practical and that it will work. What matters right now is whether the idea can stir our intellect and get the crowds excited. This is because behind the idea there's a new token which value is completely driven by the excitement of the crowds (it's pure speculation). If I invest N amount of money in a token which gets people excited,…

While by and large I agree about most ICOs, I think the value proposition is a lot clearer for something like Filecoin. Does that necessarily mean it is worth what it is valued at? No, but comparing the IPFS folks with total snake oil is a bit unfair.

Yes, but is the value proposition really $2.5 billion _pre-product_ for a team of maybe 20 (not sure exactly how many people are on Protocol Labs payroll)? And, did people actually do their diligence? Did any of the investors confirm with qualified academics and blockchain specialists that their Proof-of-Spacetime paper is secure and functional?

Or did the market blindly throw $186 million in one hour into a hot deal because it's the hottest deal?

Juan has been saying for years that one of their primary goals for Filecoin was a token sale to fund Protocol Labs.

Re: Filecoin Suspends ICO After Raising $186M in One Hour

#138

Post by beepboopbeep »

Cakez0r wrote: post #136
sktrdie wrote: post #77

What's important to note about ICOs is not necessarily whether the idea is actually practical and that it will work. What matters right now is whether the idea can stir our intellect and get the crowds excited. This is because behind the idea there's a new token which value is completely driven by the excitement of the crowds (it's pure speculation). If I invest N amount of money in a token which gets people excited,…

> People are not investing hoping for the project to be developed - they're investing because they know others will as well, which will drive the prices up. I found out recently that this is called the Greater Fool Theory - https://en.wikipedia.org/wiki/Greater_fool_theory

Bingo.

Re: Filecoin Suspends ICO After Raising $186M in One Hour

#139

Post by Cthulhu_ »

decentralised wrote: post #97
dplgk wrote: post #82

Earlier quoted context omitted.

ICOs are a new breed of gambling.

Throwing money at a business proposition is neither new nor gambling.

It is when the investors throw money at it in the hope they'll get a return on investment. You don't need $250 million to build a distributed Dropbox clone.

Re: Filecoin Suspends ICO After Raising $186M in One Hour

#140

Post by mtgx »

Cakez0r wrote: post #136
sktrdie wrote: post #77

What's important to note about ICOs is not necessarily whether the idea is actually practical and that it will work. What matters right now is whether the idea can stir our intellect and get the crowds excited. This is because behind the idea there's a new token which value is completely driven by the excitement of the crowds (it's pure speculation). If I invest N amount of money in a token which gets people excited,…

> People are not investing hoping for the project to be developed - they're investing because they know others will as well, which will drive the prices up. I found out recently that this is called the Greater Fool Theory - https://en.wikipedia.org/wiki/Greater_fool_theory

Reminds me of the time Facebook's valuation was growing by +$5 billion every 2 weeks, and Techcrunch was writing an article about it every time, further passing the hot patato along to late investors, while making the initial investors richer and richer.
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