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But as a consumer, why would I place my trust, and store my value in your shallow liquidity token when I prefer to just hold dollars? Certainly the company ICO
by PKop 9y ago
But as a consumer, why would I place my trust, and store my value in your shallow liquidity token when I prefer to just hold dollars?
Certainly the company ICO'ing benefits from the infusion of money selling their token, but what is the value prop for all these different tokens for consumers? (read: not speculators or investors)
Also, if the tokens trade for fiat on an exchange, then they certainly would be volatile as far as what value they can be exchanged for. How can you ensure the service doesn't become more expensive?
- wmf 9y agoMost ICOs don't have much value prop, but Telegram has a lot of network effect lock-in that they can use to force people to use their token for any services that ride on the Telegram network. And according to the leaked white paper, they're planning to offer every imaginable service similar to WeChat.
- aboodman 9y agoAs a consumer you likely wouldn't -- you'd buy the tokens as needed and liquidate them immediately. As an investor you might for the same reason you would invest in any other enterprise. If you believe that the application is likely to become popular, then more people will be needing the token that powers it, thus the price of that token (against other assets) will go up.