Vitalik Buterin Tries To Solve the ICO Problem With... White Paper
First of all, excuse the link bait, it was too nice of a context not to use it. Second, it is indeed about a white paper, but not like in an empty pile of sheets of paper, but the kind that you publish your ideas and thoughts on it. For the impatient, here's the link.
The white paper, published yesterday and co-authored with Jason Teutsch, from the True Bit foundation, tries to create an algorithmic approach for ICOs, via a smart contract. In this approach, the token distribution will be spread across the total number of buyers and will take into account a certain valuation, indicated by the token issuer.
I'm sure the algorithm will be implemented in many ways and it will be amended many times, but the mere fact that such an approach exists - and it's sent from such a visible source - is a very positive signal.
As we all know, ICOs are the Achille's heel in the crypto universe, because they carry an inherent risk and also because they are vehicle way too easy to be gamed and used simply for stealing money from candid investors. A more formal approach towards ICOs may lower the pressure from regulators, but keep in mind that the risk will always be there and we have yet to see effective mechanisms to mitigate it.
Only invest what you can afford to loose.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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Thank you very much for sharing
I have downloaded the white paper
Thank you!
I like the fact that Buterin has acknowledged that too many ICOs are causing problems on the ethereum network. I briefly went over the white paper and the rules/protocols for icos on the network through smart contracts. This looks really interesting! Let's see what the ICO creators have to say about this.
Interessing post and narrative. Thank you for sharing!
@dragosroua,
Yes friend, I do have a very bad history with ICO and if I had that money :/ I won't finish it! Coz I am the person who decided to invested on few scammy ICOs :D
By the way, I am at steem.chat and have few questions for you! (If you have a free time to talk)
Cheers~
@dragosroua so far I have done just a few ICO's and what I am seeing in the ones that I had interest in is that they really have not done much of anything after coming onto the market. I will probably not be doing many ICO's in the near term since what I am seeing is you can BUY a lot of them for less money than you had to pay to get them on the initial offering.......(example) I paid .10 per token on the offering and it now sell for .06 in the market place. That means I could of bought almost twice as many tokens if I waited until now....
It is very well understandable as risk is always proportionate to loss/profit :)
very very great post .
thanks for share...upvoted
ICO takes the risk and also regulate the pressure in crypto market, but can investor are satisfied by there rules?
i like it, i have resteem and upvoted @dragosroua
That's rightly said only invest that which one can afford to loose.