5 ms·
It seems like in most cases, the tokens are being used as a way for the developers to get funding to implement their project without the bureaucracy and costs o
by fragsworth 9y ago
It seems like in most cases, the tokens are being used as a way for the developers to get funding to implement their project without the bureaucracy and costs of doing a real IPO.
That would be fine on its own, but they're almost all pretending this is not the reason for it, and that the token is necessary. This is an obvious lie in nearly every case when you dig into the details. Nearly every dapp that has its own token can be cloned to use Ether without any detriment to the product.
- deleted 9y ago[deleted]
- sova 9y agoAbsolutely right, the tokens are just a stepping stone to getting the [distributed] app off the ground. It's a great model! If you believe in the utility of something you can fund it very early on and reap great rewards, or at least root great endeavors on.
- Karrot_Kream 9y agoHow so? Can't you just do the same thing staking Ether instead of yet another ERC20 token?
- colecut 9y agoYes agreed, in several cases this summer I thought I was doing well with ICOs until I did the math and realized I would have done at least as well by just holding the ETH.
- vehementi 9y agoIf the owners do that, they don't get to flip the 70% of coins they withheld after the price inflates.
- bpicolo 9y agoI somewhat fail to see how they could ever serve as a real payment utility. If they have some actual application utility, then you'd have to dynamically adjust costs based on the speculative cost of acquisition so your application costs aren't wild, and then it's still nothing but a speculation-driven currency. Isn't that just nuts? It's a built-in catch-22
- sova 9y agoNa you're looking at it as if you're moving currency from some valued mint to a non-valued mint and that's not the case, we're transforming capital from one ecosystem to another, just like Britain Pounds Sterling to the USD, when you move into the new token ecosystem you now are presented with new ways to use your token. MOST of these systems will not create _value innovation_ but some select systems will and those tokens will actually gain in value faster than the backbone currency [meaning the ivy of your token could grow faster than the tree of ETH/BTC because your innovation has value in addition to being a useful transaction vehicle].
- deleted 9y ago[deleted]
- amalag 9y agoYes many tokens are being used as shares and trying to circumvent securities law.
- LrnByTeach 9y agonot just "Many" , All of these 1400 coins listed on this site except couple of them are "being used as shares to circumvent securities law" https://coinmarketcap.com/ https://coinmarketcap.com/ >Yes many tokens are being used as shares and trying to circumvent securities law.
- tehlike 9y agoTokens are actually mostly not shares. You dont own the company that issues the tokens. Everybody likes to think that it is, though.
- Semaphor 9y agoThere are a few, like Modum, that are really nothing but unregulated shares. Most of them are unregulated less-than-shares.
- LrnByTeach 9y agoThe term "shares" is used here in loose sense, all these are coins/tokens . All these companies behind this coins/tokens have no "paid" employee or assets and no legal registration ( for the coin itself) so there is no meaning to "shares" . There is nothing for ownership rights in the sense of share .