6 ms·

The first ICO unicorns are here

42 points by proofofstake 9y ago

ruytlm 9y ago
> The OMG token sale, which raised $25 million, took place in July and initially one OMG token was worth around $0.27. Today, the value is at more than $11, giving a return of more than 40X to anyone who bought in at the ICO stage. > Another startling fact to note is that neither company has an actual product in the market right now. Although that is common with ICOs because investors buy into a product roadmap that will developed with the funds raised via the token sale. No, don't worry, this isn't a bubble. We're just experiencing a speculative soapy-water sphere situation.
- imron 9y ago
  A billion dollar buy-in on a product roadmap. I need to start thinking of a few product roadmaps.
  - austenallred 9y ago
    It's not that simple. You also have to write a whitepaper.
    - ehnto 9y ago
      I had a dream last night about managing a succesful company. The dream didn't show what the product was but anyway the initial buy in is 20c I look forward to working with you all doing what ever it is we might do.
      - shalmanese 9y ago
        https://www.youtube.com/watch?v=9LtT0xZ11wM https://www.youtube.com/watch?v=9LtT0xZ11wM
    - rainboiboi 9y ago
      or copy and paste from someone else's
    - imron 9y ago
      I'll put that on the roadmap!
- proofofstake 9y ago
  > No, don't worry, this isn't a bubble. Crypto is definitely a bubble. Perhaps one of the biggest bubbles to burst when this happens four to five years from now. > I need to start thinking of a few product roadmaps I know you are being facetious, but it really is not as simple as putting out a roadmap. Think about it: If you could pull this off, but are not doing it, you'll have us believe you are willingly turning down millions. If you can't pull it of, your comment becomes a cheap meaningless jab at things bigger than you. Both options are quite unbefitting of HackerNews. > You also have to write a whitepaper. http://plasma.io/ http://plasma.io/ Pay attention to mentions of "micropayments".
  - Atheros 9y ago
    It's not a question of turning down free millions of dollars. There is risk. If he puts his face on the operation he could be the subject of lawsuits if or when it blows up. It's also possible but very expensive to do an ICO and not violate securities laws. So he either puts fourth the massive time and capital to do it legally or he risks heavy fines and lawsuits. The lawsuits will probably come no matter what.
deleted 9y ago
[deleted]
mayank 9y ago
Is it unfounded to see ICOs as a form of unregulated gambling? I'm thinking particularly in terms of legal consequences for US-based entities offering ICOs. Can entities like the IRS or SEC punish companies or individuals that offer ICOs?
- psyc 9y ago
  Their behavior is much more like penny stocks, the old fashioned vehicle for pump and dump.
imron 9y ago
> initially one OMG token was worth around $0.27. Today, the value is at more than $11, giving a return of more than 40X to anyone who bought in at the ICO stage. You too can become a millionaire from these penny stocks.
- saalweachter 9y ago
  See, I'll play the lottery. I don't mind paying a dollar or two every now and again for the EV- hope of being undeservedly wealthy. But even with a 40x return you need to dump TWENTY-FIVE THOUSAND DOLLARS into a highly risky investment to make a single million dollars. Christ on a cracker, $25,000. That's a year of frugal living in most places. How could you even ... ?
idlewords 9y ago
This should end well.
brndnmtthws 9y ago
This is a bit off topic, but bear with me: so far, nearly every comment in this thread has contained some degree cynicism toward cryptocurrency-related funding. Why does HN have such a distaste for cryptocurrencies? Why can't we just have an intelligent conversation about this new technology? Why do we have all the negativity and downvotes for any remotely positive comments related to cryptocurrencies? This is super interesting technology, regardless of your prejudices, and just complaining about it being a "bubble" doesn't add any value to the conversation.
- aqsheehy 9y ago
  How positive are we meant to be about out right scams and Ponzi schemes?
  - brndnmtthws 9y ago
    By that logic, you can say the same thing about pretty much every single silicon valley startup.
    - aqsheehy 9y ago
      Yes, skepticism is healthy
    - Ologn 9y ago
      Some startups will grow very large and become very valuable and will stay around for a long time. No cryptocoins will be around for a long time. They are all going to crash to near worthlessness, including Bitcoin and Ethereum. Also the idea of Webvan was not a bad one, they were just too early. People put too much money in too early to a good idea. Cryptocoins are not an idea before its time or of its time. It is inherently a worthless thing. Just like quack medicine was worthless a century ago and is worthless now.
      - aqsheehy 9y ago
        Bitcoin has value, you need it to buy drugs online.
continuations 9y ago
All we're missing now is a Super Bowl ad for ICO complete with a cute sock puppet mascot named Ether.
ChuckMcM 9y ago
Wow, they are exactly replicating the mechanism that fleeced so many retail buyers of stock in the dot.com bubble. It never occurred to me you could take that experience and monetize it so effectively. I suppose I shouldn't be surprised after I saw what the Mortgage industry did to student loans after they didn't get as much money out of sub-prime mortgages as they had forecast.
- Ologn 9y ago
  > Wow, they are exactly replicating the mechanism that fleeced so many retail buyers of stock in the dot.com bubble. It never occurred to me you could take that experience and monetize it so effectively. Human nature hasn't changed much in the past 17 years, on either the scammer end or on the scammed end.
tvural 9y ago
There are likely some ulterior motives behind the way cryptocurrency is currently being covered. If you have sway in a news organization, it would be quite lucrative to invest in some crypto-related companies, and then encourage all stories written about cryptocurrency to take a positive view. The persuasion works best when it's hidden, like a story about a teenager becoming rich by buying into bitcoin early. This is fine, but only if all such stories come with a disclosure. Otherwise it's an ethically challenging position to be in, like the rating agencies who kept quiet to avoid losing their clients during 2008.
giarc 9y ago
I wonder how many people are making 5 years salary in a month or two getting in on these ICOs?!
nickjudge 9y ago
This is now a pretty long comment chain, and not a single comment so far about asset liquidity and start-up valuations. So, the infinity:1 ratio of "bubble!" to "econ 101" doesn't speak well to the thinking going on here.

42 points by proofofstake 9y ago

> The OMG token sale, which raised $25 million, took place in July and initially one OMG token was worth around $0.27. Today, the value is at more than $11, giving a return of more than 40X to anyone who bought in at the ICO stage. > Another startling fact to note is that neither company has an actual product in the market right now. Although that is common with ICOs because investors buy into a product roadmap that will developed with the funds raised via the token sale. No, don't worry, this isn't a bubble. We're just experiencing a speculative soapy-water sphere situation.

imron 9y ago
A billion dollar buy-in on a product roadmap. I need to start thinking of a few product roadmaps.
- austenallred 9y ago
  It's not that simple. You also have to write a whitepaper.
  - ehnto 9y ago
    I had a dream last night about managing a succesful company. The dream didn't show what the product was but anyway the initial buy in is 20c I look forward to working with you all doing what ever it is we might do.
    - shalmanese 9y ago
      https://www.youtube.com/watch?v=9LtT0xZ11wM https://www.youtube.com/watch?v=9LtT0xZ11wM
  - rainboiboi 9y ago
    or copy and paste from someone else's
  - imron 9y ago
    I'll put that on the roadmap!
proofofstake 9y ago
> No, don't worry, this isn't a bubble. Crypto is definitely a bubble. Perhaps one of the biggest bubbles to burst when this happens four to five years from now. > I need to start thinking of a few product roadmaps I know you are being facetious, but it really is not as simple as putting out a roadmap. Think about it: If you could pull this off, but are not doing it, you'll have us believe you are willingly turning down millions. If you can't pull it of, your comment becomes a cheap meaningless jab at things bigger than you. Both options are quite unbefitting of HackerNews. > You also have to write a whitepaper. http://plasma.io/ http://plasma.io/ Pay attention to mentions of "micropayments".
- Atheros 9y ago
  It's not a question of turning down free millions of dollars. There is risk. If he puts his face on the operation he could be the subject of lawsuits if or when it blows up. It's also possible but very expensive to do an ICO and not violate securities laws. So he either puts fourth the massive time and capital to do it legally or he risks heavy fines and lawsuits. The lawsuits will probably come no matter what.

deleted 9y ago

[deleted]

mayank 9y ago

Is it unfounded to see ICOs as a form of unregulated gambling? I'm thinking particularly in terms of legal consequences for US-based entities offering ICOs. Can entities like the IRS or SEC punish companies or individuals that offer ICOs?

psyc 9y ago
Their behavior is much more like penny stocks, the old fashioned vehicle for pump and dump.

imron 9y ago

> initially one OMG token was worth around $0.27. Today, the value is at more than $11, giving a return of more than 40X to anyone who bought in at the ICO stage. You too can become a millionaire from these penny stocks.

saalweachter 9y ago
See, I'll play the lottery. I don't mind paying a dollar or two every now and again for the EV- hope of being undeservedly wealthy. But even with a 40x return you need to dump TWENTY-FIVE THOUSAND DOLLARS into a highly risky investment to make a single million dollars. Christ on a cracker, $25,000. That's a year of frugal living in most places. How could you even ... ?

idlewords 9y ago

This should end well.

brndnmtthws 9y ago

This is a bit off topic, but bear with me: so far, nearly every comment in this thread has contained some degree cynicism toward cryptocurrency-related funding. Why does HN have such a distaste for cryptocurrencies? Why can't we just have an intelligent conversation about this new technology? Why do we have all the negativity and downvotes for any remotely positive comments related to cryptocurrencies? This is super interesting technology, regardless of your prejudices, and just complaining about it being a "bubble" doesn't add any value to the conversation.

aqsheehy 9y ago
How positive are we meant to be about out right scams and Ponzi schemes?
- brndnmtthws 9y ago
  By that logic, you can say the same thing about pretty much every single silicon valley startup.
  - aqsheehy 9y ago
    Yes, skepticism is healthy
  - Ologn 9y ago
    Some startups will grow very large and become very valuable and will stay around for a long time. No cryptocoins will be around for a long time. They are all going to crash to near worthlessness, including Bitcoin and Ethereum. Also the idea of Webvan was not a bad one, they were just too early. People put too much money in too early to a good idea. Cryptocoins are not an idea before its time or of its time. It is inherently a worthless thing. Just like quack medicine was worthless a century ago and is worthless now.
    - aqsheehy 9y ago
      Bitcoin has value, you need it to buy drugs online.

continuations 9y ago

All we're missing now is a Super Bowl ad for ICO complete with a cute sock puppet mascot named Ether.

ChuckMcM 9y ago

Wow, they are exactly replicating the mechanism that fleeced so many retail buyers of stock in the dot.com bubble. It never occurred to me you could take that experience and monetize it so effectively. I suppose I shouldn't be surprised after I saw what the Mortgage industry did to student loans after they didn't get as much money out of sub-prime mortgages as they had forecast.

Ologn 9y ago
> Wow, they are exactly replicating the mechanism that fleeced so many retail buyers of stock in the dot.com bubble. It never occurred to me you could take that experience and monetize it so effectively. Human nature hasn't changed much in the past 17 years, on either the scammer end or on the scammed end.

tvural 9y ago

There are likely some ulterior motives behind the way cryptocurrency is currently being covered. If you have sway in a news organization, it would be quite lucrative to invest in some crypto-related companies, and then encourage all stories written about cryptocurrency to take a positive view. The persuasion works best when it's hidden, like a story about a teenager becoming rich by buying into bitcoin early. This is fine, but only if all such stories come with a disclosure. Otherwise it's an ethically challenging position to be in, like the rating agencies who kept quiet to avoid losing their clients during 2008.

giarc 9y ago

I wonder how many people are making 5 years salary in a month or two getting in on these ICOs?!

nickjudge 9y ago

This is now a pretty long comment chain, and not a single comment so far about asset liquidity and start-up valuations. So, the infinity:1 ratio of "bubble!" to "econ 101" doesn't speak well to the thinking going on here.