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Just to provide more options to the discussion and because nobody has mentioned it: Have you considered that all ICOs are a scam of some sort? Or that you can p
by erikb 9y ago
Just to provide more options to the discussion and because nobody has mentioned it: Have you considered that all ICOs are a scam of some sort? Or that you can participate in scams and still end up being a winner?
To get the noodle baking about the first part: The goal of every public offering is to make more money than what the stuff you're offering is worth to you. Of course it may have more value to other people for different reasons, but the basic idea is not to get the same value or less of what it's worth to you. So to some degree an ICO always plans to take more than it gives.
- quuquuquu 9y agoEhhh the definition of every successful business is one that creates more value than the sum of its parts. There has to be a consumer somewhere, and consumers usually buy something with intrinsic value (you chop down a tree, I buy the wood from you for my house.) When there is no intrinsic value being gained, this means that the company is really just a shell game, moving money around. Think poker. People are voluntarily risking money, to play a game, to get someone else's money (and some slight entertainment.) So, if a business markets itself as one that is creating value ("we do easy digital, global payments!"), but is really just moving money around ("buy our ICO, get in on the ground floor!")... then buyer be aware :)
- erikb 9y agoI like your way to define it better, because it also provides an inherent way of avoiding (more, probably not all) scams. Don't buy stuff for the sole purpose of hoping for profit. Things you buy need to have intrinsic value. The least thing you have is a logical reason why someone else would buy it for more. And in that case early adopters of ICO-scams are doing it the smart(er) way. Because they buy coins for less than the offering price and can guess from marketing hype what they may get on offering day for it.
- quuquuquu 9y agoAbsolutely, I do agree! Buying something expressly for profit, but masquerading it as a business, that = Herbalife. Now, some people actually do drink Herbalife shakes, but usually they are doing so as a rite-of-passage to some kind of "next level of distributorship." craziness, really :)
- nkrisc 9y agoI think it's important to maintain a distinction between an intentional, predatory scam and something that's just an ill-conceived, but well-intentioned, bad idea that ends up flopping.
- erikb 9y agoI think nobody wants to ignore the second part. However I don't agree with the good intention, bad intention part. In truth we all want to make the world better and we all want to gain from it. While there are few really predatory offers, many are just basic human selfishness+ignorance. It's the difference between taking someone's purse and finding that the cashier gave you too much change. The second part is not really evil, but it's very likely to happen. So you better count twice before handing out your money.