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This article shows the dark side of filecoin. https://medium.com/token-economy/the-analysis-filecoin-doesnt-want-you-to-read-e60d5243f17c https://medium.com/tok

This article shows the dark side of filecoin. https://medium.com/token-economy/the-analysis-filecoin-doesnt-want-you-to-read-e60d5243f17c https://medium.com/token-economy/the-analysis-filecoin-doesn... So many funds will prove a big competitor though, and sequoia Investments is well known for its success with investing in the past. But who wouldn't invest at such a discount (read article: pre sale discount is massive) I think even more than the benefit of money (to hire talent,) Filecoin is benefitting from the advice and connections from their investors!

product50 9y ago
Just because someone else got the filecoins at a discount doesn't make it a bad investment. You are investing for future growth potential vs. what others have bought it for.
chinathrow 9y ago
From one of the linked investor questions: "..all our work has been funded by under $3.5M. We know how to deploy capital effectively." Then don't raise capital like hell. Pure greed. Money quote from your link: "Call me old fashioned, but wanting to raise half a billion dollars for a pre-product endeavor is absolutely fucking insane."
- AndrewKemendo 9y ago
  Hey all the hottest startups do it: Magic Leap ($1.4B), Theranos ($720M), Color ($41M), Clinkle ($25M)
  - sireat 9y ago
    Suddenly Color and Clinkle don't seem so outrageous.
- honestlyreally 9y ago
  Perhaps it is money that is worth little, rather than many asset classes being overvalued?
mtgx 9y ago
As long as this ends up turning IPFS into an ultra-popular internet protocol, then I'll be happy.
mdekkers 9y ago
This article shows the dark side of filecoin That article sounds like mostly sour grapes. The whole thing can be summarised as "How dare they give early investors discounts, when I wasn't invited to invest at the same time!!" This is followed by "how dare they raise money, and then admit they don't actually need as much to run the business!!" The guy just sounds pissed other people are making more off of this then he will.
- abstene 9y ago
  Would a company like this ever offer equity to one VC for $x and then charge a second VC $8x 2 weeks later? Honest question?
  - mdekkers 9y ago
    Would a company like this ever offer equity to one VC for $x and then charge a second VC $8x 2 weeks later? Why wouldn't they? It is pretty standard to raise different rounds at different valuations.
    - elmar 9y ago
      yes, but some big milestones have to be achieved for a 8x time increase.
      - pookeh 9y ago
        Publicity can happen in 2 weeks. It's like a land was up for sale. You buy it at x, dig it a bit to see it's covered with gold then put it back on sale for 8x. (Of course you may be fooling everyone that it's covered with gold but it's really not.)
      - kobeya 9y ago
        Not really, no. "Follow-on rounds" are a thing. Usually with rounds more like 2x the valuation than 8x, but still. The last company I was at went out and raised 3x as much at 2x the valuation Series B while the ink was drying on the Series A. There was demand, so why not?
baybal2 9y ago
How lucky they are!
icomyass 9y ago
Here's two more analyses that actually leave you smarter. Stefano Bernardi's read to me like it boils down to greed, which is a weird category. - https://medium.com/@twobitidiot/ico-ethics-filecoin-short-term-fear-long-term-greed-5f5313b0b4e0 https://medium.com/@twobitidiot/ico-ethics-filecoin-short-te... - https://medium.com/@ryanshea/the-economics-of-filecoin-a8d826774674 https://medium.com/@ryanshea/the-economics-of-filecoin-a8d82...
ringaroundthetx 9y ago
yeah but this is no different than how private equity functions so its an ok criticism in the token sale space, but it is a different and unnecessary standard
thisisit 9y ago
Wow. I was just looking at their sale document and while everyone seems to be using the word "vesting". I am unable to find what it means exactly specially if the coins are minted at genesis.

product50 9y ago

Just because someone else got the filecoins at a discount doesn't make it a bad investment. You are investing for future growth potential vs. what others have bought it for.

chinathrow 9y ago

From one of the linked investor questions: "..all our work has been funded by under $3.5M. We know how to deploy capital effectively." Then don't raise capital like hell. Pure greed. Money quote from your link: "Call me old fashioned, but wanting to raise half a billion dollars for a pre-product endeavor is absolutely fucking insane."

AndrewKemendo 9y ago
Hey all the hottest startups do it: Magic Leap ($1.4B), Theranos ($720M), Color ($41M), Clinkle ($25M)
- sireat 9y ago
  Suddenly Color and Clinkle don't seem so outrageous.
honestlyreally 9y ago
Perhaps it is money that is worth little, rather than many asset classes being overvalued?

mtgx 9y ago

As long as this ends up turning IPFS into an ultra-popular internet protocol, then I'll be happy.

mdekkers 9y ago

This article shows the dark side of filecoin That article sounds like mostly sour grapes. The whole thing can be summarised as "How dare they give early investors discounts, when I wasn't invited to invest at the same time!!" This is followed by "how dare they raise money, and then admit they don't actually need as much to run the business!!" The guy just sounds pissed other people are making more off of this then he will.

abstene 9y ago
Would a company like this ever offer equity to one VC for $x and then charge a second VC $8x 2 weeks later? Honest question?
- mdekkers 9y ago
  Would a company like this ever offer equity to one VC for $x and then charge a second VC $8x 2 weeks later? Why wouldn't they? It is pretty standard to raise different rounds at different valuations.
  - elmar 9y ago
    yes, but some big milestones have to be achieved for a 8x time increase.
    - pookeh 9y ago
      Publicity can happen in 2 weeks. It's like a land was up for sale. You buy it at x, dig it a bit to see it's covered with gold then put it back on sale for 8x. (Of course you may be fooling everyone that it's covered with gold but it's really not.)
    - kobeya 9y ago
      Not really, no. "Follow-on rounds" are a thing. Usually with rounds more like 2x the valuation than 8x, but still. The last company I was at went out and raised 3x as much at 2x the valuation Series B while the ink was drying on the Series A. There was demand, so why not?

baybal2 9y ago

How lucky they are!

icomyass 9y ago

Here's two more analyses that actually leave you smarter. Stefano Bernardi's read to me like it boils down to greed, which is a weird category. - https://medium.com/@twobitidiot/ico-ethics-filecoin-short-term-fear-long-term-greed-5f5313b0b4e0 https://medium.com/@twobitidiot/ico-ethics-filecoin-short-te... - https://medium.com/@ryanshea/the-economics-of-filecoin-a8d826774674 https://medium.com/@ryanshea/the-economics-of-filecoin-a8d82...

ringaroundthetx 9y ago

yeah but this is no different than how private equity functions so its an ok criticism in the token sale space, but it is a different and unnecessary standard

thisisit 9y ago

Wow. I was just looking at their sale document and while everyone seems to be using the word "vesting". I am unable to find what it means exactly specially if the coins are minted at genesis.