Why EtherParty (FUEL) ICO Sucks ..

in ethereum •  last month

Once a fan ..

Let this be a lesson to anyone who is investing in ICOs, who think that mass adoption equates to increased price of the coin/token .. it is not always the case. Platform developers may wish to keep the price of said coin/token as low as possible, because increasing the chance of that mass adoption depends upon it! Scarcity is often used as the mechanism of increasing price, as is the case with Bitcoin itself .. if there was no scarcity, the price would not move .. or of course, if there was no growth in adoption, the price would fall to try and increase that demand.

Enter EtherParty ..

What a great idea! Paint-by-numbers smart contracts, that anyone can create and deploy .. all you need to do is to purchase FUEL tokens! How much will they cost!? ... GOOOOOD QUESTION!

How are they going to set the price and how much can the price grow, so that ICO participants will enjoy a return on their investment .. which all investors should expect! The product is good and will succeed, but that does not mean that the ICO investor will gain anything substantial. For example, if EtherParty prices FUEL at 10 cents, we'll make like 2 cents per FUEL profit - makes perfect sense for them to do exactly that - if they price each FUEL at $ 1.00, they will undoubtedly have to work with incremental amounts of FUEL in pricing the various contracts and lengths of time that they will remain in service, etc. .. not very user-friendly.

Word to the wise ..

Product and team is not everything .. if you are investing in a project to 'earn profit on your investment in a token' you must invest in something that will pay you a return, or that has a lot of upside in the future price of the token itself - ideally both.

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This may have been a little .. reactionary .. we can still hope for more than $ 1.00 per FUEL. What do y'all think? $ 1.00 max, less, or more?

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I believe we may see more than $1.00 - Etherparty has said that they will let the market decide, and they would be wise in doing so. They should take the current trade price from the largest exchange that will list FUEL, and sell FUEL on the platform for that price.

This post has received a 1.06 % upvote from @booster thanks to: @kurtbeil.

amigo #resteemia at your service


useful info about ICO. excellent review @kurtbeil

ReSteemia
'UpVoted ReSteemed Commented'

Thanks for this post and telling about it :)