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In 2001 if you said that the Internet was going to be worth $1 trillion dollars, you were correct. But 99% of investments on internet companies in 2001 were bad
by Taek 9y ago
In 2001 if you said that the Internet was going to be worth $1 trillion dollars, you were correct. But 99% of investments on internet companies in 2001 were bad investments.
That's where we are today with ICOs. Cryptocurrency is going to be absolutely massive, and it has some very intelligent people doing amazing things. But the vast majority of ICOs are going to flop. Look at the rankings in 2013:
http://web.archive.org/web/20131218060943/http://coinmarketcap.com/ http://web.archive.org/web/20131218060943/http://coinmarketc...
- saimiam 9y agoIf this is true, then VCs spreading their money across any and every ICO makes strategic business sense and should be applauded instead of being pilloried for being scam artists trying to fleece regular folks into buying coins.
- Taek 9y agoThat's only if you assume the tokens today will form the foundation of the $1 trillion cryptocurrency economy. The biggest projects of tomorrow may not exist yet, or they may take a very different shape than the volatile token economics we see today.
- saimiam 9y agoThat still doesn't call into question the VC's investment strategy. You can't always time the market waiting for the killer app of Coins. Waiting to black swan the ICO space like John Paulson did with housing isn't feasible in the aggregate.