RE: Running Security Token on Polymath - is it a REVOLUTION? (tutorial included)
Firstly, I wish to express my gratitude for your constant support @crypto.piotr :)
I fully agree with you. Current crisis shows that Blockchain technology needs radical changes. ICOs were sufficient when the level of trust among community was quite high. Unfortunately, this trust was based on constant growth of Bitcoin price and success of every ICO. When bear market has begun companies and community got panicky and started to sell their tokens rapidly (btw your comparison to Steemit is brilliant).
However, I think that current crisis may lead to a positive consequences. In "traditional" economy it is a time when market is cleaned up of unprofitable businesses. The same thing may happen in Blockchain, as it is no longer profitable to run a shoddy ICO. This may also result in a situation when it is only economic to run an STO which will certainly make them more popualr.
The biggest problem with ICO is that currently those companies that are launching them are usually the reason why price is falling down. Because they are selling as much as they can.
That's very good point. The situation when company is selling ownership is probably also more comfortable for itself. They wouldn't be afraid that price will fluctuate significantly which may cause a loss of 30% of their funds overnight.
Greetings,
Jan
I love to see how responsive you are @neavvy. That's just way to go :)
Steemit need people like US :)
Thank you. I figured that it will be easier "to feel" this kind of comparison since we're all affected with price of STEEM.
If you would look closer at companies on traditional stock market (like facebook) then you would notice that sometimes those companies are re-buing their own shares. Something that hardly ever happend here in crypto-space. So it's not only constant selling pressure coming out from those businesses launching token.
When the price go down they are sometimes buying "back the ownership" to their own business. This way they also ensure some sort of stability of price of their own shares. Which in long run builds more investors trust.
Cheers buddy, Piotr