Earlier quoted context omitted.
the industry standard term for them is "the suckers"
I thought they're called bagholders. (baghodlers?)
I thought they're called the "greater fools"
Half of ICOs Die Within Four Months After Token Sales Finalized
31–40 of 433 posts
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#32So I've been doing alot of thinking lately about traditional VC and PE vs ICO's for work. Its pretty rare for VC and PE firms to just be blatantly ripped off like a good portion of ICO investors are. As far as I can this is due to 3 things. 1) Geography, Most VC/PE firms only invest in a particular country and know the laws as they relate to the contracts they sign with companies. This ensures that they can atleast t…
> So I've been doing alot of thinking lately about traditional VC and PE vs ICO's for work. You are missing part of the story: before ICOs there is a presale phase where some projects finish before the ICO. This is where real competition with VCs happens since the top projects receive more money from non traditional investors using cryptoassets than the one promised by traditional VCs (except in very rare cases). In…
Unless I'm misunderstanding you, you seem to agree with me, with the exception of you thinking geography doesn't matter.
I'd disagree with your idea that geography doesn't matter. I would have more confidence in an ICO in the US than I would in say China where it can be hard to sue someone and collect your damages if you win.
but if you really feel geography doesn't matter then please share your argument for this, I'm ready to learn!!
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#33I'm so surprised that smart contracts aren't being used to release the funds over some set of time, with the ability for community to vote to block it if they feel team has stalled. Nobody needs $20 or $50m on day 1.
Why would anyone issuing an ICO want this? Even if you're not a scammer, why would you want the community to be able to block your funding due to unforeseen circumstances?
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#34I'm so surprised that smart contracts aren't being used to release the funds over some set of time, with the ability for community to vote to block it if they feel team has stalled. Nobody needs $20 or $50m on day 1.
Smart contracts don't work because they require all the funds to be held in escrow. So if I see the need to release $50 million then I need to hold that in escrow and during that time I can't use the capital for other purposes.
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#35Earlier quoted context omitted.
Why would anyone running an ICO agree to that? Clearly the current system ‘works’. They get money, no accountability, and everyone just moves on. No wonder crypto-currencies enjoy such a positive image among the ‘haters’ and ‘doubters’. Because they keep earning it.
Once ICO scams stop working, the world will move towards traditional models. Crypto is out there, and it's not going anywhere. Eventually someone will realize that the smarter move is to create sustainable value over time.
The market for lemons argument (https://en.wikipedia.org/wiki/The_Market_for_Lemons) suggests this is not true. When a sufficiently large percentage of the market is fraudulent (and in the ICO space it's damn close to 100%), buyers will demand a price premium to compensate for their risk to the point where honest actors can't participate profitably. That isn't happening yet because we're still in the tulip mania phase, but eventually people will want such high returns for the absurd amount of risk in the crypto space that no one will bother.
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#36Earlier quoted context omitted.
I imagine the facade must be maintained long enough for the checks to irrevocably clear, which can actually take a while. The big bad evil fiat government money system has the advantage and disadvantage of being able to claw back transactions for quite a while, since it's basically the fundamental primitive of the system that ensures integrity of the system. (That is, at the foundation, the money system tends not to…
Don’t most ICOs use an existing coin (likely bitcoin or Ether) as the unit of purchase?
Yeah, they wouldn't work with fiat that well, since goverment wouldn't allow it (basically).
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#37Earlier quoted context omitted.
I imagine the facade must be maintained long enough for the checks to irrevocably clear, which can actually take a while. The big bad evil fiat government money system has the advantage and disadvantage of being able to claw back transactions for quite a while, since it's basically the fundamental primitive of the system that ensures integrity of the system. (That is, at the foundation, the money system tends not to…
Don’t most ICOs use an existing coin (likely bitcoin or Ether) as the unit of purchase?
Yes. Nobody is buying into an ICO in 2018 with their credit card or "checks" directly, so jerf's assertion is probably inaccurate.
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#38You can see the state (volume, # daily users) of some of these promised "dapps" here: https://dappradar.com . It is indeed a barren wasteland. And when a new popular ICO comes along, the Ethereum network struggles and fees skyrocket. It's weird because people compare it to the early days of the Internet... but the early Internet was useful from its beginning: you could at least send messages and files across the netw…
What if we make a currency where each ICO is one coin?
It is more or less what ethereum is with ERC tokens
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#39You can see the state (volume, # daily users) of some of these promised "dapps" here: https://dappradar.com . It is indeed a barren wasteland. And when a new popular ICO comes along, the Ethereum network struggles and fees skyrocket. It's weird because people compare it to the early days of the Internet... but the early Internet was useful from its beginning: you could at least send messages and files across the netw…
This is a serious question as I want to make sure I'm reading this right: CryptoKitties really had only 274 users in the past 24 hours? The USV/Andreessen company?
Re: Half of ICOs Die Within Four Months After Token Sales Finalized
#40I'm so surprised that smart contracts aren't being used to release the funds over some set of time, with the ability for community to vote to block it if they feel team has stalled. Nobody needs $20 or $50m on day 1.
Why wouldn't you just do several rounds? No ned to commit that money.
These "entrepreneurs" are just raising as much as they can. And because there is so much dumb money in crypto, they raise a lot.