The below blog link “Lessons from the Great Algae Biofuel Bubble” is very well written, entertaining, sarcastically funny and a cautionary tale about investing trends. One of the companies in the list of failed projects was backed by Tim Draper’s fund (Draper is a major crypto investor). What I want to point out is that this story holds some wisdom for any of us interested in cryptocurrency. In particular it brings up an interesting question. That is, is cryptocurrency itself an investment sector, a technological frontier (like biofuels), purely a new form of money, a democratized capital market or a combination of all of these. When you think about it this way you might help yourself avoid some risks or at least be more thoughtful in how you distribute funds. I don’t claim to have all the answers but I do think one of the mistakes being made (all part of the evolution of crypto) is that on the whole investors are treating all crypto too much like a homogenous sector. Each ICO needs to be evaluated as an investment vehicle into a sector rather than as a coin to appreciate if crypto rises (as it will in a bubble but not when markets are acting more rationally). Ultimately I think The ICO market will do a better job than the current VC system at driving growth in new business but in the short term a lot of us have our sites set on the effects of a rising crypto tide not on sound investment decision making.

https://www-greentechmedia-com.cdn.ampproject.org/c/s/www.greentechmedia.com/amp/article/lessons-from-the-great-algae-biofuel-bubble