What is an Initial Coin Offering and How Does it Work? • Hacker News Board

Re: What is an Initial Coin Offering and How Does it Work?

#101

Post by richardknop » Mon, Jul 03, 2017, 4:50 PM UTC

lrvick wrote: post #98

blhack wrote: post #87

I can't believe there is no mention of tezos here ( https://www.tezos.com/ ). Which currently has raised $123,317,760.00 in bitcoins and $68,709,765.86 in ethereum. Almost $200,000,000 raised for something that doesn't even exist yet, all so that the founders can create it. It's basically $200,000,000 into a kickstarter. What the absolute frell is going on there I have no idea.

Tezos has a working testnet available to anyone on request and a functional (albeit early) platform. They also took extra time and delayed their ICO to get proper accountability systems in place via good legal standing for the Tezos Foundation. Tezos asks a vital question. Can cryptocurrency governance be decentralized? Can we do better than the anarchy of management for Bitcoin and Ethereum with chain splits being t…

You think 200 million in funding for a blockchain implementation in Ocaml written by one developer is reasonable?

Because to me it seems absolutely ridiculous. For comparison, Docker has so far raised around 180 million in 5 funding rounds. It has somewhere between 300-400 employees.

Re: What is an Initial Coin Offering and How Does it Work?

#102

Post by lrvick » Mon, Jul 03, 2017, 4:53 PM UTC

fny wrote: post #73

So how exactly does one change these currencies to fiat? Is it even possible or are you trapped with the currency until some type of exit event?

That is what exchanges offer for a fee.

Re: What is an Initial Coin Offering and How Does it Work?

#103

Post by ereyes01 » Mon, Jul 03, 2017, 4:55 PM UTC

Much has been said about risks to investors buying into ICOs. What about risks to startups selling ICOs? Should every startup be fundraising via ICOs right now or risk missing the gravy train?

Re: What is an Initial Coin Offering and How Does it Work?

#104

Post by jayeshsalvi » Mon, Jul 03, 2017, 4:59 PM UTC

If cryptocoins are equivalent to shares in the company, what is the equivalent of dividends?

Re: What is an Initial Coin Offering and How Does it Work?

#105

Post by drcode » Mon, Jul 03, 2017, 5:01 PM UTC

fny wrote: post #88

heliumcraft wrote: post #83

Earlier quoted context omitted.

Ethereum has no "play" here, it isn't a platform made for token sales (aka "icos"), it's a generalistic platform that happens to have projects that do this sort of token sales.

The Ethereum founders do: they've managed to turn themselves into a certification/approval stamp of sorts. I've seen them slapped on as advisors for umpteen of these ICOs. If I were them, I'd create a regulatory company and take a cut for "Ethereum-approved ICOs."

Vitalik has conceded this was a mistake and has stated he will no longer have any formal role in outside ethereum businesses. He also stated that he was not paid for any of these advisory positions he held.

Re: What is an Initial Coin Offering and How Does it Work?

#106

Post by logfromblammo » Mon, Jul 03, 2017, 5:11 PM UTC

ufo wrote: post #92

sumoboy wrote: post #86

Earlier quoted context omitted.

How is investing in the stock market not a gamble? Potentially reduced risk with alot more rules and regulations it's not any different IMO.

A stock is an ownership share in a real (money-making) company. Criptocoins, on the other hand, have questionable intrinsic value.

Whoa, whoa, whoa. Who told you that a company had to make money to issue stock?

Re: What is an Initial Coin Offering and How Does it Work?

#107

Post by hudon » Mon, Jul 03, 2017, 5:14 PM UTC

lrvick wrote: post #98

blhack wrote: post #87

I can't believe there is no mention of tezos here ( https://www.tezos.com/ ). Which currently has raised $123,317,760.00 in bitcoins and $68,709,765.86 in ethereum. Almost $200,000,000 raised for something that doesn't even exist yet, all so that the founders can create it. It's basically $200,000,000 into a kickstarter. What the absolute frell is going on there I have no idea.

Tezos has a working testnet available to anyone on request and a functional (albeit early) platform. They also took extra time and delayed their ICO to get proper accountability systems in place via good legal standing for the Tezos Foundation. Tezos asks a vital question. Can cryptocurrency governance be decentralized? Can we do better than the anarchy of management for Bitcoin and Ethereum with chain splits being t…

> Can cryptocurrency governance be decentralized? Can we do better than the anarchy of management for Bitcoin and Ethereum with chain splits being the solution to dispute?

What does this mean, really? What is decentralized governance and how is Bitcoin's governance not decentralized? Isn't anarchy decentralization by definition?

Re: What is an Initial Coin Offering and How Does it Work?

#108

Post by simias » Mon, Jul 03, 2017, 5:14 PM UTC

richardknop wrote: post #101

lrvick wrote: post #98

Earlier quoted context omitted.

Tezos has a working testnet available to anyone on request and a functional (albeit early) platform. They also took extra time and delayed their ICO to get proper accountability systems in place via good legal standing for the Tezos Foundation. Tezos asks a vital question. Can cryptocurrency governance be decentralized? Can we do better than the anarchy of management for Bitcoin and Ethereum with chain splits being t…

You think 200 million in funding for a blockchain implementation in Ocaml written by one developer is reasonable? Because to me it seems absolutely ridiculous. For comparison, Docker has so far raised around 180 million in 5 funding rounds. It has somewhere between 300-400 employees.

Yeah that's the most perplexing thing with those ICOs IMO. We could argue all day whether this and that idea has some merit or not, but many of those start ups end up raising orders of magnitude more money than they should ever need to build their thing. Many of these projects could be completed by a modest team in a few months. That's just absurd and a complete waste of resources.

Re: What is an Initial Coin Offering and How Does it Work?

#109

Post by nateberkopec » Mon, Jul 03, 2017, 5:15 PM UTC

The fact that this is on "fxempire.com" is really all you need to know, isn't it?

FX trading and daytrading are two forms of legalized gambling for the upper class, so it makes sense that the same crowd will be interested in cryptocurrency. Such people are generally aware they are speculators and participating in a high-risk activity, so, fine. But what I worry about is the "dumb money" that follows. I saw Twitter ads for a "Bitcoin IRA" today. If you're putting your retirement savings in Bitcoin...

Re: What is an Initial Coin Offering and How Does it Work?

#110

Post by hellbanner » Mon, Jul 03, 2017, 5:15 PM UTC

api wrote: post #96

blhack wrote: post #87

I can't believe there is no mention of tezos here ( https://www.tezos.com/ ). Which currently has raised $123,317,760.00 in bitcoins and $68,709,765.86 in ethereum. Almost $200,000,000 raised for something that doesn't even exist yet, all so that the founders can create it. It's basically $200,000,000 into a kickstarter. What the absolute frell is going on there I have no idea.

> What the absolute frell is going on there I have no idea. Money laundering? Flight capital? Under the table payments for services rendered in some other area? I have no insider knowledge. It's just a speculation. But if even 10% of this actually exists in some liquid sense this is serious money. The number of participants in these markets is far lower than Kickstarter and yet the money in question here is massive.…

I've heard the same rumor about "WTF "art"".