Can Storj break all the rules of the market and have a successful "ICO"?
Storj is having an "ICO" on Friday. May 19th. However, the strange thing about this particular company is that Storj already has a publicly traded asset, called "Storjcoin X (SJCX)", generated from a previous ICO.
A further oddity is that Storj claims to want to raise $30 million in the ICO. This was revealed in an email that was sent to you if you were registered on Storj's mailing list.
This $30 million ask is particularly interesting as the total market cap of all the Storjcoins currently in existence only stands at about $28 million. Can Storj dump $30 million coins in a market only $28 million large and still have a successful ICO without diluting shares of current holders? The market sure seems to think so, as Storjcoin has been on a surge. Reality, however, may turn out quite differently.
The plan is to move Storj to the Etherium blockchain instead of Bitcoin where it is now. The ICO is to pay for this move. I don't know what this will do to the value of SJCX. But they will convert 1:1 with the new Etherium token. Personally, I think it's a good idea. Lower fees, faster transactions, Ethereum is a much better host for Storj than Bitcoin ever will be.
agreed!
Good points in this post. Good to see I'm not the only one that is thinking about this. Icos have zero obligations to their token holders, they can just run away at any time they want. That's why we have to do very proper research before we invest in them. Besides coinmarketcap.com there is: https://www.coincheckup.com I really missed a platform that analyses every single coin in depth but this site gave me all the answers.