Post-ICO BANCOR IOUs for sale? Be CAREFUL!!!
Post-ICO IOUs: Be careful
[UPDATE] 14:14 EST: The IOU is now worth approximately 0.008 bitcoins. It crashed and burned. Condolences to everyone who bought at 0.03... It really sucks to see this happening because now those IOU buyers just lost a bunch of money but the exchange is still keeping the price inflated to make profit... :\
Original Article
I'm sorry if you missed out on Bancor and was totally hyped about it this morning. I'm pretty bummed, too.
But please BE CAREFUL about trying to buy in at this point. The ICO is already over and the coin is NOT publicly available for sale. There is NO WAY someone can transfer you Bancor right now, so do not fall for it.
That being said, I noticed that some exchanges are selling IOUs for the coin at very inflated prices.
3 main points to observe:
The price of the Bancor IOU is 0.03 Bitcoins.
At the time of writing, 1 Bancor IOU is selling on one of the exchanges for 0.03 Bitcoins (BTC).
In case you're wondering why I won't link any sources on this one, I won't name the exchange because the purpose of this article isn't to shame anyone/anything, it's just to help readers make more informed buying decisions.The 0.03 BTC translates into $78.9057; i.e., 1 Bancor IOU is $78.9057.
Also at the time of writing, 1 BTC = $2,630.19; therefore, 0.03 of it is $78.9057.
The value of 1 BNT from the ICO calculates to $1.9288
According to Ethplorer, a total of 79,323,978 BNT had been issued from the ICO. The ICO raised roughly $153M. This would mean the value of each BNT would be approximately $1.9288.
So if you are buying 1 IOU at $78.9057 when the current price is $1.9288, the price would need to increase by 40.9x by the time of initial public trading in order for you to break even (well, even more because of transaction fees). Please note, I'm not in any position to make any predictions about Bancor, so I cannot say that it will or won't increase by that amount. But 40.9x is the target increase value that Bancor needs to grow in order for you to almost break even.
If there is no market, how do you know the price ?
You're right there is no market for it, I calculated the proposed average ICO price based on the total shares issued vs the amount of money raised. At that rate, it is approximately $1.93. But there is no telling where it will be when/if it hits the trading desks... But having a starting price of $78.91 per share... I'm not a crypto expert but... That would be REALLY good for any ICO buyers haha... Lucky them!
SO where can I sell my BNT for $78 each?
@pandaking , that small exchange who shall remain nameless, created their own market that's allowing users to trade Bancor IOU tokens. They aren't allowing you to deposit your BNT tokens.
Usually in most cases when an exchange makes an IOU token for an ICO/Crowdsale, they've bought into the original ICO and they are usually backing up each IOU share of the ICO on a 1 to 1 basis. The exchange didn't explicitly state what was backing up the IOU so that's another potential warning sign.
[posted from @jesta 's https://beta.chainbb.com - a forum on top of the Steem blockchain]
Very good article. I was about to start a similair discussion. I've been asking myself. How many people really do a proper background check before seriously investing in an ICO? An interesting website I found: https://www.coincheckup.com The site that lets you check all there is to know about the team, product, communication transparency, advisors and investment statistics on every crypto.