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Aren't they taking on somewhat more risk by contributing large sums of money earlier on? I kind of think the discount is acceptable, but there should be stronge
by sna1l 9y ago
Aren't they taking on somewhat more risk by contributing large sums of money earlier on? I kind of think the discount is acceptable, but there should be stronger terms around the ability to flip it immediately.
- snarf21 9y agoYeah, I don't see it as "holding the bag". People are greedy and are now sad they can't find anyone to buy their pyramid scheme tokens. If these ICOs are now requiring accredited investors, why does there not seem to be the same level of SEC scrutiny that any normal hedge fund must have?
- wmf 9y agoGetting in a few weeks earlier on a multi-year project doesn't seem like much additional risk.
- cocktailpeanuts 9y agoYou're right to some degree but not entirely, because of how early cryptoeconomics are in their stage. When people pump money into a currency, they're not just "taking risks", but also using their authority in the community to generate hype, which brings in uneducated and uninformed people into the equation. If you look around the Internet you quickly realize how "uneducated and uninformed" most of these investors are. This is different from traditional family/friends => Angel => VC => public model because the public is protected from making any foolish investments until the org shows tangible traction. So TLDR: they're taking risks, so at the same time they try to minimize their risks. This is why they exit very quickly. This isn't possible with traditional investment model where your money is locked in until an IPO or an M&A, which is why it is unfair to say these people are "taking risks". They have the ability to manipulate their risk and that makes a lot of difference.