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RE: My though about ICO and token sales
Especially if this token is to be used as currency, or for paiment, it seems very hard to make it works for merchant with such kind of premise on the value of the token.
As long as there is money invested, this money should be used to back the value a minimum no ?
Or at least have accountability to track how much money actually back the token.
The Monet is used to develop the product (in theory). If the product fails, the money is gone!
Yes its what is supposed to be, but then the token price should be indexed on the investment capital, and decrease with the expanse, but still being backed as much as possible with the capital value.
And still its never very clear if the token is currency to pay for service, or speculative asset backed by capital, and how the value is indexed. And even how share-token holder are supposed to get profits if the product is successfull, and how the token based paiment platform being used is connected to value of the coin.
All seems very shady to me lol
It all looks more ponzi like that share holder expect other investor to buy the share-token at higher price, without having clear backing of the price neither for merchant that accept the token as paiment or for investors to monitor the value of the token related to supposed project success.
I agree many ICO's are shady and a lot will end with people losing their money. Its not a Ponzi, but people are definitely using the greater fool theory, expecting a greater fool will pay more than they did for the asset.
Yes greater fool theory seem more accurate than ponzi, but its even borderline pyramid scheme, where first level issuers sell the token at a certain price to intermediary who will sell it at higher price, and lot of the value seem to be based on such scheme.