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The ICO phenomenon is, in some sense, diametrically opposed to venture capital. Both are fundraising mechanisms: one sells liquid tokens on the open market, th
by pdog 9y ago
The ICO phenomenon is, in some sense, diametrically opposed to venture capital.
Both are fundraising mechanisms: one sells liquid tokens on the open market, the other sells illiquid shares to VCs.
Does YC plan to address competition from tokens, and if so, how?
- will_brown 9y agoYCoin
- discombobulate 9y agoYoken
- hossbeast 9y agoComboToken
- rrecuero 9y ago1 - In the short term, I don't think ICOs are a solution for every kind of company. Just for protocols and networks. 2 - Great investors provide more than just access to capital. My point of view is similar to Fred Wilson's. More here http://avc.com/2017/06/icos-and-vcs/ http://avc.com/2017/06/icos-and-vcs/
- discombobulate 9y agoTokens will allow for increased liquidy. However, the greater liquidy comes @ a premium, & will increase the price of the asset.
- dsacco 9y ago> Great investors provide more than just access to capital. Like what?
- SkyMarshal 9y agoHigh-level problem solving the startup isn't capable of on its own.
- ringaroundthetx 9y agoIt is as revolutionary as the share company was 400 years ago. Game over, illiquid equity.
- vit05 9y agoI think YC was anticipating this. Creating StartupSchool and other programs increasingly targeted to contribute as consultants and educators rather than as investors. In addition, it is still necessary to have great and respectful names on the list of advisors of any ICO, if it is a long term plan, startups will still need people that could show the best way to create a company.
- dharma1 9y agoThere is an important distinction between most tokens and shares - shares mean direct ownership in a company, tokens don't. If you had shares in Company X and it got acquired, you would be entitled to a share of the sale price. If you have tokens in FileCoin, EOS, whatever - and they sell the underlying company or IPO - your tokens might have appreciated independently of that, but you get 0% of the underlying company sale. So a company issuing tokens, compared to VC funding, is essentially getting free money with few strings attached.