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I can't envision a future where they are anything but a scam. The tokens have no legal or economic connection to any business activity produced by the token cre

I can't envision a future where they are anything but a scam. The tokens have no legal or economic connection to any business activity produced by the token creators so I don't see why any ICO token would be worth any more than any other besides hype.

pavel_lishin 9y ago
They seem like Kickstarter bred with stocks - mostly an unenforceable promise of future products/services/magic to the users who buy the initial coins. An employee where I work recommended we do our own ICO, but for the life of me, I couldn't figure out what it was that the coins would eventually be exchanged for. Maybe I'm just too dumb - he's objectively smarter than me, I'll freely admit - but it seemed not too different from shaking a cup to passersby.
- joosters 9y ago
  This flaw has not stopped many ICOs!
- root_axis 9y ago
  Yeah, being very smart doesn't seem to be an effective inoculant against blockchain hysteria. Then again, the ICO scammers are making millions and I'm not, so, maybe I'm getting ahead of myself.
- deleted 9y ago
  [deleted]
tekromancr 9y ago
Sort of. For situations where the coin represents some ambiguous "share" of the project, absolutely. However, when the tokens are used as an incentive mechanism for a fledgling decentralized network, I think it makes a bit more sense. Things like Sia or Storj or Ether or Ark where the token is there to function as a cost/reward for using/providing the service that the network provides (filestorage, smart contracts, decentralized cryptocurrency exchange) I believe that it actually does have some intrinsic value.
- root_axis 9y ago
  Although I am skeptical of the utility of 99% of these decentralized networks (Storj seems at least a worthwhile experiment), I think that's a fair distinction since the blockchain logic can ensure that tokens represent some stake in the decentralized network.
- tlrobinson 9y ago
  I think even in most of those cases it would make more sense to use Bitcoin or Ethereum, which users are more likely to already have, and will likely be less volatile.
smokeyj 9y ago
What excites me most about ICOs is how accessible it makes organization. To get a group of 10 people to work on a common goal and share the reward is surprisingly difficult. The overhead of the legal and accounting costs makes it a non-start for anything worth less than a multi-million dollar venture. But what about all the opportunities below that? Local shops, gardens, and service based businesses? I'd like to see a set of standardized smart contracts, where if you adhere to the protocols of the contract, investors can enjoy the benefit of certain expectations. Such as, the cap table being accurate. The distribution of shares will be known, along with the voting power of all members. The flow of income and payout of dividends will also be transparent. If complying with regulation is cheap and accessible more people will do it. I'd like the SEC to open a github account and create regulatory compliant smart contracts. Let's welcome everyone into the business class and encourage local investments in our communities. That's my vision for ICOs at least.
stale2002 9y ago
Well, if the company ACTUALLY produces what was promised, and gives the token owners what they are owed, then it wasn't a scam.

pavel_lishin 9y ago

They seem like Kickstarter bred with stocks - mostly an unenforceable promise of future products/services/magic to the users who buy the initial coins. An employee where I work recommended we do our own ICO, but for the life of me, I couldn't figure out what it was that the coins would eventually be exchanged for. Maybe I'm just too dumb - he's objectively smarter than me, I'll freely admit - but it seemed not too different from shaking a cup to passersby.

joosters 9y ago
This flaw has not stopped many ICOs!
root_axis 9y ago
Yeah, being very smart doesn't seem to be an effective inoculant against blockchain hysteria. Then again, the ICO scammers are making millions and I'm not, so, maybe I'm getting ahead of myself.
deleted 9y ago
[deleted]

tekromancr 9y ago

Sort of. For situations where the coin represents some ambiguous "share" of the project, absolutely. However, when the tokens are used as an incentive mechanism for a fledgling decentralized network, I think it makes a bit more sense. Things like Sia or Storj or Ether or Ark where the token is there to function as a cost/reward for using/providing the service that the network provides (filestorage, smart contracts, decentralized cryptocurrency exchange) I believe that it actually does have some intrinsic value.

root_axis 9y ago
Although I am skeptical of the utility of 99% of these decentralized networks (Storj seems at least a worthwhile experiment), I think that's a fair distinction since the blockchain logic can ensure that tokens represent some stake in the decentralized network.
tlrobinson 9y ago
I think even in most of those cases it would make more sense to use Bitcoin or Ethereum, which users are more likely to already have, and will likely be less volatile.

smokeyj 9y ago

What excites me most about ICOs is how accessible it makes organization. To get a group of 10 people to work on a common goal and share the reward is surprisingly difficult. The overhead of the legal and accounting costs makes it a non-start for anything worth less than a multi-million dollar venture. But what about all the opportunities below that? Local shops, gardens, and service based businesses? I'd like to see a set of standardized smart contracts, where if you adhere to the protocols of the contract, investors can enjoy the benefit of certain expectations. Such as, the cap table being accurate. The distribution of shares will be known, along with the voting power of all members. The flow of income and payout of dividends will also be transparent. If complying with regulation is cheap and accessible more people will do it. I'd like the SEC to open a github account and create regulatory compliant smart contracts. Let's welcome everyone into the business class and encourage local investments in our communities. That's my vision for ICOs at least.

stale2002 9y ago

Well, if the company ACTUALLY produces what was promised, and gives the token owners what they are owed, then it wasn't a scam.