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It's worse than that. In some cases, the coins literally serve no purpose. To use your metaphor, it's like buying StoreBucks for a store that hasn't been built
by Cakez0r 9y ago
It's worse than that. In some cases, the coins literally serve no purpose. To use your metaphor, it's like buying StoreBucks for a store that hasn't been built yet, with no promise that you'll be able to redeem your StoreBucks for anything at all.
For example, a project called Status (http://status.im/ http://status.im/) recently held an ICO in which people were tripping over themselves to buy Status's coins. It actually backed up the Ethereum network for several hours with pending transactions and they raised over $100 million USD worth of Ethereum (at the time). See if you can find on their website a description of what the coins are actually used for. I can't!
- richardknop 9y agoYes I mean that is just insane. There is no reason for Status.im to have their own token. It's just a money grab. Basically a 50 million funding round without having to give up any equity in your startup! Way better than VC.
- Jabanga 9y agoThe explanation of the token's use is right here: https://status.im/whitepaper.pdf https://status.im/whitepaper.pdf
- sjg007 9y agoThey might be interpreted gift cards in that sense.
- ge96 9y agoWhat do you use Ethereum for? I bought some but realized I couldn't easily use it as buying an Amazon gift card with Bitcoin. Something about permanent storage and security (regarding Ethereum usage).