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Let's say a ton of people lose a bunch of money on highly speculative businesses that raise money using ICOs. What is the right response to this? "Tough luck"?
by tardo99 9y ago
Let's say a ton of people lose a bunch of money on highly speculative businesses that raise money using ICOs. What is the right response to this? "Tough luck"? Regulation?
How is this any different than the wild west days of stock sales prior to the regulations that came about during the great depression in the US?
- rrecuero 9y agoICOs, in general, are really immature. The market is being exuberant and the majority of projects in the space may fail. Many people are taking advantage of the current status. The ecosystem will eventually mature and follow some guidelines learned in the past decades by angels and VCs i.e Doing a small seed round first, proving you are building something people want and then, if you achieve your milestones, you can get to a series A and so on. The ironic thing is that these milestones and progressive rounds are easier to achieve and track with tokens. If the milestone is not met, the smart contract automatically returns the funds to investors.
- lambdadmitry 9y ago>If the milestone is not met, the smart contract automatically returns the funds to investors. That can't work that way. The only way the smart contract can return the funds is if they are locked somehow, but what's the point of raising money then? People raise money to spend them, so they by definition don't have that money and it can't be returned, much less "automatically".