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It seems the old ways of hosting ICO's have disappeared into a more greed driven, insta-profit seeking investments...
Before I explain the new methods, lets take a walk down memory lane and realize how past cryptocurrency crowd-funding used to occur, which was only less than 8 months ago.

Previous Method - CrowdFunding:

When a new cryptocurrency project would launch and go through a crowdfund phase, it was common to have a few things set in stone while others were variable. For instance, there was NO definitive "Price per Token" when you participated, you simply added your investment into the overall pool and what you received was a % of the total of investments. The token supply was fixed... If the development team created a token with a 100million supply, then all of those 100million were distributed in the crowdfund.

It was sometimes mysterious when participating in these projects crowdfunds because you simply never knew how many tokens you were going to receive until the ICO closed.

NEW Method - Token Sale

I'm not sure exactly when this started happening, but projects are now setting fixed prices per token during the ICO. It's actually a literal "Token Sale" based upon what the development team sets for "price per token".
I have noticed that this method is being schemed into a fashion where the development team is looking to maximize investor contributions while attempting to make early contributors a profit...
Which brings us to the next new concept..

The Pre-Ico

This method of offering massive discounts to early big investors has completely destroyed the ICO.

As many investors have realized recently... The Pre-Ico tends to be the exchange listing price while the ICO is simply over-priced.
Many ICO investors are taking massive losses through buying in the crowdfund just to have Pre-Ico investors dump there stash of cheep tokens on the markets.

In turn, I am witnessing many projects that raised Millions during the Pre-Ico phase are now struggling to find any significant investment during the ICO phase!

Investors have learned that ICO's are over-priced!

In one case, there is a company right now that raised over $2 million in Pre-Ico a month ago and when they launched the ICO, they received less than $10,000 after 1 week!!

Obviously something is wrong... Simple answer: Pre-Ico = $1 , ICO = $2.50
Anyone who is anyone can see that the pricing clearly gives the Pre-Ico investor way way way to big of a discount... And essentially, is what I would consider borderline "SCAM" as pre-ico investors had to have a minnimum of 25k invested.
It allows the rich to get richer... nearly instantly!

• They cancelled the ICO and are planning a restructuring of pricing

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If your an ICO investor, and you still want to invest into ICO's...

Keep this in the back of your mind:

• See how much the Pre-ICO raised and at what "Price per Token" they received. If the raised amount is huge, and the discount is large - PASS. The Token price will most likely "Crash" well under ICO price once it hits the markets

• Ask the development team how they decided on the "Price per Token" during the ICO phase. Simply having the ICO price being higher than the PRE-ICO price is NOT a good answer, Its actually a stupid answer. If that is all they can offer for reasoning - PASS.

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I blame this new Token Sale movement which includes a Pre-Ico to be the root cause of the ICO problems we are now experiencing...

I think new projects should take a step back and attempt to go back to how it used to be done here in cryptocurrency land...

Back to the CROWDFUND

Forget about the Token Sale

Stop trying to turn the "ICO" into an "IPO"

Stop the GREED!

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Thank you for reading my posting on Steemit.

Feel free to comment

@generation.easy

bitcoin fanatic and alt-coin enthusiast