Topic: A Realization - Why All ERC-20 Tokens Are Shit - page 2. (Read 385 times)
I do not think that the idea of conducting an ICO is bad. This is a good way to quickly attract large amounts of money to the project and at the same time release tokens for the work of this project. If ICO projects and issued tokens are equated to securities, everything will become very complicated and we will practically lose the decentralized crypto currency in the form as it exists now. The risk in the ICO campaign is huge, but also a huge profit if the project proves successful. Nobody forces anyone to invest in ICO projects. Everyone himself disposes of his own means. If anyone is not sure about the ICO campaign, he may not invest or buy a token already on the market, so fraud will be minimized.
With traditional shares, you own a part of the company. You have legally guaranteed protections in place that the board of directors of a company MUST have your best interest at heart at all times, or they go to jail. By us idiots (myself included) investing into ICOs whereby we forfeit all judicial and legislative protections that a company is MANDATED to have our best interests at heart, we essentially take on all the same risks as shareholders do, without any of the benefits. We essentially trust completely private enterprises that they'll always have our best interest at heart as token holders. Stop, pause, and realize how stupid we all are.
Take FUNFAIR for example. This is a huge risk investment with a lot of potential. As an early contributor, you get absolutely no equity, profit, or anything else in the platform, but rather simply the ability to purchase the token that will be used by casinos early. That's it. Investors like us fund companies like this from the ground up, and yet receive absolutely nothing comparable in return in the way of ownership and profit sharing.
Guys, we must all WAKE THE FUCK UP. Honestly. We must unite and STOP this practice whereby we invest in utility tokens. ALL ERC-20 tokens, and platform tokens, should be securities. Nothing else. We should all have ownership in a company we invest in, including sharing its profit.
None of these shit tokens offer any of the reward that we as investors deserve for the risk that we take. Absolutely none, unless you can cite me a specific ICO that gives you legal ownership of the company with the token, then none. The one exception are DAOs. Yes, these do confer you actual ownership, and I wish this is the direction that all ICOs would take, however they don't. Most ICOs are centralized and are not DAOs, and they will give you shit tokens rather than ownership shares that you deserve.
This is a realization we should all make. This practice needs to end.
Take FUNFAIR for example. This is a huge risk investment with a lot of potential. As an early contributor, you get absolutely no equity, profit, or anything else in the platform, but rather simply the ability to purchase the token that will be used by casinos early. That's it. Investors like us fund companies like this from the ground up, and yet receive absolutely nothing comparable in return in the way of ownership and profit sharing.
Guys, we must all WAKE THE FUCK UP. Honestly. We must unite and STOP this practice whereby we invest in utility tokens. ALL ERC-20 tokens, and platform tokens, should be securities. Nothing else. We should all have ownership in a company we invest in, including sharing its profit.
None of these shit tokens offer any of the reward that we as investors deserve for the risk that we take. Absolutely none, unless you can cite me a specific ICO that gives you legal ownership of the company with the token, then none. The one exception are DAOs. Yes, these do confer you actual ownership, and I wish this is the direction that all ICOs would take, however they don't. Most ICOs are centralized and are not DAOs, and they will give you shit tokens rather than ownership shares that you deserve.
This is a realization we should all make. This practice needs to end.
Agree with this
ERC-20 actually is a good concept that need to be backed by government
IMO before any legalization of ICO, we need to treat it as a VERY HIGH RISK GAMBLE
they are not forcing us to invest in their ICOs and it is up to you if you are willing to invest. many want to take this high risk just to earn profit. the problem now is they are blindly investing in scam that is why they lose money instead of profit. at the end of the day you want to earn money and by joining ICOs you can earn x2, x3 or more but more risky.
Right. It's their choice of course. But by raising awareness and educating investors better, we can make better demands from companies and invest in better quality/legitimate ICOs which will make the entire alt-coin sphere much better for everyone. Once investors start demanding profit sharing with their tokens, and stop pumping scams, that is the time the mainstream public can finally begin to take tokens seriously and make serious investments.
they are not forcing us to invest in their ICOs and it is up to you if you are willing to invest. many want to take this high risk just to earn profit. the problem now is they are blindly investing in scam that is why they lose money instead of profit. at the end of the day you want to earn money and by joining ICOs you can earn x2, x3 or more but more risky.
With traditional shares, you own a part of the company. You have legally guaranteed protections in place that the board of directors of a company MUST have your best interest at heart at all times, or they go to jail.
Let me tell you a secret. Not all shares provide a right to vote. Sometimes you won't even be able to purchase those coontroll shares. The board of directors determine the company's future. They may decide to pay you more dividends or to waste those money on something that no one needs. You are still not guaranteed to me the main guy in the company.What about tokens. First of all it is not the fault of ERC-20, you can make your tokens on the other platform. Also ICO is a mix of croudfunding and actual investind. Most ICOs even issue their tokens as a currency for their project. In such cases no one even claims that it should give you any ownership rights for the product.
But it is still obvious that investors want to feel safer. Pretty often the people that rise huge money on ICOs don't even know how to manage his new company and lose much money only because of poor management.
This is not the fault of the token standart. The only thing that I see for now is to issue some kind of reputable organisation (that's just my thoughts, I have no idea how it could be reputable from the very begining) that will make something like a private certificate that could be achieved after the deep analysis (maybe that will make ICOs to make better whitepapers). I'm still not sure how it will work but there is no better way.
The problem isn't that ERC-20 tokens are good or bad. The real problem is that investors are unconscious, greedy and gamblers. I think people who don't have any knowledge or know-how have reduced the quality of the market. If there were really conscious investors in the majority, I believe that we didn't encounter so many scam events.
I have much of the same concerns, like with FunFair, there is an additional risk that when it comes to "fund" the casinos, the owners could tap and sell the billions of unsold tokens and not only cut us out of the profits, but flood the market and drive the price down further. It is a huge risk, but if the done right, and honestly, it could have a huge return.
But at the end of the day, if you want equity and dividends, there are all sorts of tech company on the NYSE and NASDAQ that offer just that. If Crypto were exactly like the stock market, I wouldn't be here. I'd be on eTrade right now.
But at the end of the day, if you want equity and dividends, there are all sorts of tech company on the NYSE and NASDAQ that offer just that. If Crypto were exactly like the stock market, I wouldn't be here. I'd be on eTrade right now.
With traditional shares, you own a part of the company. You have legally guaranteed protections in place that the board of directors of a company MUST have your best interest at heart at all times, or they go to jail. By us idiots (myself included) investing into ICOs whereby we forfeit all judicial and legislative protections that a company is MANDATED to have our best interests at heart, we essentially take on all the same risks as shareholders do, without any of the benefits. We essentially trust completely private enterprises that they'll always have our best interest at heart as token holders. Stop, pause, and realize how stupid we all are.
Take FUNFAIR for example. This is a huge risk investment with a lot of potential. As an early contributor, you get absolutely no equity, profit, or anything else in the platform, but rather simply the ability to purchase the token that will be used by casinos early. That's it. Investors like us fund companies like this from the ground up, and yet receive absolutely nothing comparable in return in the way of ownership and profit sharing.
Guys, we must all WAKE THE FUCK UP. Honestly. We must unite and STOP this practice whereby we invest in utility tokens. ALL ERC-20 tokens, and platform tokens, should be securities. Nothing else. We should all have ownership in a company we invest in, including sharing its profit.
None of these shit tokens offer any of the reward that we as investors deserve for the risk that we take. Absolutely none, unless you can cite me a specific ICO that gives you legal ownership of the company with the token, then none. The one exception are DAOs. Yes, these do confer you actual ownership, and I wish this is the direction that all ICOs would take, however they don't. Most ICOs are centralized and are not DAOs, and they will give you shit tokens rather than ownership shares that you deserve.
This is a realization we should all make. This practice needs to end.
Take FUNFAIR for example. This is a huge risk investment with a lot of potential. As an early contributor, you get absolutely no equity, profit, or anything else in the platform, but rather simply the ability to purchase the token that will be used by casinos early. That's it. Investors like us fund companies like this from the ground up, and yet receive absolutely nothing comparable in return in the way of ownership and profit sharing.
Guys, we must all WAKE THE FUCK UP. Honestly. We must unite and STOP this practice whereby we invest in utility tokens. ALL ERC-20 tokens, and platform tokens, should be securities. Nothing else. We should all have ownership in a company we invest in, including sharing its profit.
None of these shit tokens offer any of the reward that we as investors deserve for the risk that we take. Absolutely none, unless you can cite me a specific ICO that gives you legal ownership of the company with the token, then none. The one exception are DAOs. Yes, these do confer you actual ownership, and I wish this is the direction that all ICOs would take, however they don't. Most ICOs are centralized and are not DAOs, and they will give you shit tokens rather than ownership shares that you deserve.
This is a realization we should all make. This practice needs to end.
You are blaming tokens for your own lack of understanding about business. A share on a small business may never ever reach a market or you may have to wait for years before it does. Just lear how to choose the RIGHT tokens.
To all the other shit replies: If you invested in Google or any other fundamental tech startup at the time you would have made at least a x10. In Google's case a x30. Ever heard of angel investing? They also return x10 quite frequently, sometimes x100 or x1000. The only difference with ICOs and traditional investments is that we WILL get screwed over eventually with our useless ERC-20 tokens, myself included.
Also don't you dare use the pro-government strawman argument. If you want real decentralized tokens then these ICOs should be launched as proper DAOs. DAOs are fully decentralized and embrace the spirit of the blockchain, whilst conferring actual ownership of the organization with the tokens. Registered companies that are motivated by profit that issue us shitty utility tokens have nothing at all to do with decentralization or any anti-government movement. In fact they will comply with governments if they're forced to. DAOs don't have this issue. The majority of ICOs are not DAOs. Think of better arguments if you don't agree.
Also don't you dare use the pro-government strawman argument. If you want real decentralized tokens then these ICOs should be launched as proper DAOs. DAOs are fully decentralized and embrace the spirit of the blockchain, whilst conferring actual ownership of the organization with the tokens. Registered companies that are motivated by profit that issue us shitty utility tokens have nothing at all to do with decentralization or any anti-government movement. In fact they will comply with governments if they're forced to. DAOs don't have this issue. The majority of ICOs are not DAOs. Think of better arguments if you don't agree.
Exactly. Venture capital experts usually get in right at the so-called ground floor... in terms of stocks/shares, this is even before the IPO stage. I suppose the equivalent for crypto and blockchain ICOs are all those private funding rounds or "private pre-sales". They invest a huge amount, basically like a seed fund, and by the time the IPO or ICO comes out, they own shares at a tiny fraction of the price that even the earliest investor can obtain - very easily this can mean they get x10 or more, just not publicized.
I got burned last year by these ERC20 token investments, I only made two serious investments, and truly believed in the ideas, but I'm really beginning to think now that I got duped. I get what you're saying about DAOs, but ETC holders will forever remind us that even that is a huge screw over potential.
Not all ERC-20 shitcoin but majority of token are. It is because it has no high standard requirements in creating token in Ethereum platform.
By your own definition, not all ERC-20 tokens are shit,,, they need to be securities to not be shit right? To be honest, I have one ERC20 token that is precisely a security, or at least, when it started out it was supposed to work like one. Of course, if the company just disappeared, I would be left with zero, but they were supposed to distribute profits according to shares of tokens owned. Well, it almost happened, but then they had to change their tokens to utility instead of security, so I sort of got screwed over.
I do not like utility tokens, because they create the use, and none of it is "real".
I do not like utility tokens, because they create the use, and none of it is "real".
Glad to hear you also get it now.
To all the other shit replies: If you invested in Google or any other fundamental tech startup at the time you would have made at least a x10. In Google's case a x30. Ever heard of angel investing? They also return x10 quite frequently, sometimes x100 or x1000. The only difference with ICOs and traditional investments is that we WILL get screwed over eventually with our useless ERC-20 tokens, myself included.
Also don't you dare use the pro-government strawman argument. If you want real decentralized tokens then these ICOs should be launched as proper DAOs. DAOs are fully decentralized and embrace the spirit of the blockchain, whilst conferring actual ownership of the organization with the tokens. Registered companies that are motivated by profit that issue us shitty utility tokens have nothing at all to do with decentralization or any anti-government movement. In fact they will comply with governments if they're forced to. DAOs don't have this issue. The majority of ICOs are not DAOs. Think of better arguments if you don't agree.
I disagree, they shouldn't be considered securities.
No one is being forced to invest in ICO's.
There is risk involved in almost everything you do in life, the last thing I want is the US government mandating for ICOs.
perfect on that mate,its our freewill joining or investing in ico,no one forces us to participate,meaning what ever happens is our discretion and prerogatives so never blaim the tokens or the platforms,this is the risk of profiteering.you can gain.but you can lose also No one is being forced to invest in ICO's.
There is risk involved in almost everything you do in life, the last thing I want is the US government mandating for ICOs.
By your own definition, not all ERC-20 tokens are shit,,, they need to be securities to not be shit right? To be honest, I have one ERC20 token that is precisely a security, or at least, when it started out it was supposed to work like one. Of course, if the company just disappeared, I would be left with zero, but they were supposed to distribute profits according to shares of tokens owned. Well, it almost happened, but then they had to change their tokens to utility instead of security, so I sort of got screwed over.
I do not like utility tokens, because they create the use, and none of it is "real".
I do not like utility tokens, because they create the use, and none of it is "real".
Do you also realize that the most return these traditional shares give is 10-20% in a year. That too if you are lucky. Now think about the tokens which if you had bough just one year ago, would have given you so much return that you wouldn't had to work again. There are people like you who cant see revolution happening and are fearful and cant do anything themselves and wont let others do too. If you don't trust something or don't like something about it than don't invest in it.
not all tokens erc20 is shit, it depends on the progress made. many tokens begin to be reinforced after ico is finished because the team is trying their best for the investors and some are just leaving them. then before joining the investor should check the ICO well
very unfair if you blame the token erc20, this is purely a mistake that is from the developer. what we see now is bullshit, ico average just makes the developers rich. that's why many countries are banning ico, because the government wants the best for investors.
if you think ico make a profit, then continue, but if make a loss, then leave it.
if you think ico make a profit, then continue, but if make a loss, then leave it.
Governments don't want what's best for investors. Governments can't tax the majority of ICOs. Governments LOVE ICOs that comply with regulations. Governments want what is best for the government.
Government is the enemy of the people. 99,98% of ICOs are also enemies of the people.
very unfair if you blame the token erc20, this is purely a mistake that is from the developer. what we see now is bullshit, ico average just makes the developers rich. that's why many countries are banning ico, because the government wants the best for investors.
if you think ico make a profit, then continue, but if make a loss, then leave it.
if you think ico make a profit, then continue, but if make a loss, then leave it.
I also agree with the comments, most of the time ERC20 tokens and don't have any value, the value of their existence is just hype and financing, in my opinion, in the case of the more strict law by national governments, and most ERC20 tokens will disappear.
Bingo. The current craze and "we invest in tokens for huge profit" mania is based purely on speculative hype. 10 years from now when it's obvious most of these tokens are only good for utility purposes, their true value will emerge.
I also agree with the comments, most of the time ERC20 tokens and don't have any value, the value of their existence is just hype and financing, in my opinion, in the case of the more strict law by national governments, and most ERC20 tokens will disappear.
Not all ICOs are bad. Moreover, investing in any project, we understand that this is a venture investment. That is, there are high risks and high profits are possible. Everyone knows this beforehand. If you study all information about the project and conduct a thorough analysis, then I think you can find promising projects. And not all erc-20 tokens are bad. This is just a convenient and easy way to start your project. And if it continues to develop well, the project can move to its own blockchain.
I agree with this comment the most. Icos that actually have a working product designed to use your tokens within the platform I think have validity. Not every ico needs their own blockchain. Darico for example runs in ethereum solely because it's a utility token and their programs need tokens to use it. Unlike other coin that Ned their own blockchain
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