What are the risks when an ICO like Tezos (or EOS) raises TOO much? Marc Andreessen's Wisdom
View this post on Hive: What are the risks when an ICO like Tezos (or EOS) raises TOO much? Marc Andreessen's Wisdom
View this post on Hive: What are the risks when an ICO like Tezos (or EOS) raises TOO much? Marc Andreessen's Wisdom
Be careful with Tezos.
IMO:
The hype is real, will draw in millions.
Read more in my post below for elaboration:
https://steemit.com/tezos/@kyle.anderson/we-don-t-need-to-hardfork-a-questionable-story-about-tezos-ico-july-1st
I would love Tezos as a small $4 million experiment in governance. I don't buy their thesis on why their structure is necessary, but I'm willing to wait and see...but at the insane valuation they're going to have, it is hard to imagine it being a long term success.
I like QRL as a small, $4 million experiment using a new blockchain.
Experiment all you want. the game theory is pretty clear.
Research needs to be on:
PoS - nothing at stake problem and long range attacks
Sharding - the pinnacle scaling solution. Many problems hinging on unknown unknowns.
I was having the same conversation yesterday.
These folks are raising millions of dollars and only have vapourware. Plus, if you read the fine print for EOS, it basically states, If you choose to agree, we can do anything, we can take the money and run.
People are investing based on the reputation of the two lead members of the technology.
99 percent of icos are a waste
Yeah true. Go BAT, be BRAVE! That's one kind of amazing coin to be a part of an ICO. But Tezos with no cap limit, is GREED.
hope that BAT dev guys dont take too long with implementing bat into the browser, expectations were high, not much delivered yet.
This is a brilliant team who have achieved way more than most of them in the digital dimension as whole. It will definitely take time to deliver as it's gonna be a global product. Personally I can bet on these people than a project like Tezos. Patience will pay off for projects like BAT, ANT, SNGLS etc. I don't look at it as a profitable coin but a project which could give a decent returns. Have patience my friend, it's gonna pay off...
We don't know that yet. Too early to say. The hit rate in terms of returning capital on startups is higher than most people think, 60% or so. Maybe only 20% of ICOs will work out in the long run but some might work out hugely. We'll see and observe.
You are definitely right with this. Raising too much money can be counterproductive in the sense that they have all of this money, so they aren't as "careful" with their ideas they're implementing. They figure if one thing doesn't work, they'll just try the next, versus planning how they're going to spend the money. Not to mention the lack of experience in dealing with a project of that magnitude. Hiring so many people so fast before there's even a "status quo" is risky to say the least. I hope they've thought about all of the consequences and aren't just thinking about themselves and their bottom dollar.
I agree completely. It seems like this cryptospace is the only area where I have ever seen people be able to raise millions and millions of dollars without having a product to sell. That is why I changed my mindset for ICOs to "Show me your idea and I will be interested, show me your product, and I will invest.
In my opinion, most of the money flowing into these ICOs are from early adopters of bitcoin. They are sitting on a pile of bitcoins which they cannot easily convert to fiat for whatever reason. (Transfer limits etc.) So they see these icos as opportunities to diverse their investments.
What the current ICO market is like
I worry that the ICO frenzy will leave some with such bad experiences that many will shy away from crypto adoption. With an IPO though there are many inefficiencies but there is a lot of regulation and good change forced by seeking public money (voting structures, transparency in records, increased accountability on management). If each ICO results in a price bump on ethereum it is forcing the real adopters to buy at inflated prices. With ICO's it seems like many can raise money with no independent view of what the right valuation is.
Well the market is inchoate. We'll find an equilibrium after a cycle, but markets take time to get stable, and exponential growth markets more so. People acting responsibly and reasonably on both sides of ICOs (i.e. buyers and sellers) would smooth things out, but the market will sort this out in the end one way or another.
I think Tezos will do well based on
they tezos team have lot of experience in financial markets and large crypto projects
The region they'll be located has many big crypto related companies
their is a few concerns as outlined in
this reddit article but thats only a problem if fails
This isn't a very well thought out reply or thesis. I'd work on formulating your thoughts and editing.
Nice post...
I think everyone is drunk of money,
But there are certain ways to make money.
Amazing, very interesting post you, thank you for sharing.