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Disclaimer: Not too familiar with ICOs, and this might be ignorance on my part but genuinely interested in learning. My understanding was that ICOs were basica
by an4rchy 9y ago
Disclaimer: Not too familiar with ICOs, and this might be ignorance on my part but genuinely interested in learning.
My understanding was that ICOs were basically a way to invest in companies/ideas smiliar to startups, and therefore reap the benefits if the project succeeds, ie upside.
Were the Siafunds given to investors as a way to reward them for investing in the company and therefore accruing in value as it grows and succeeds?
If so, is that a way to back out valuations for the company/product? (If that is the case, is it true that as more people use siacoins more revenue generated -> more profits -> value of Siafunds goes up)
- zherbert 9y agoI think the better way to think about it is that you are investing in the network itself (at least in Sia's case). Siafunds could be valued with an NPV of the future revenue generated by users buying storage on the Sia network. It's much harder to figure out how to value utility tokens. Here's an interesting starting point: https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7 https://medium.com/@cburniske/cryptoasset-valuations-ac83479...