Because no one read this I will re-post it for future reference! I hope Bittrex refunds everyone for the ICO and pays the devs in iceberg coins.
So sad what will happen to IPO/ICO holders. When the mining starts the price will plummet, Doing IPO/ICO for this industry is not acting in the investors best interest. Please heavily research IPO's before investing.
In the real world IPO's or initial public offerings are designed to give clients/insiders a perk for staying with the firm over the years. The valuation has to be spot on so that the reduction in share price is beneficial to the client.
You can't set an IPO price for a crypto-currency since there is no real business history or established revenue streams behind it yet. I.e. Facebook revenues and client-base.
Even then once ipo's hit the market the share price usually plummets because the IPO holders usually sell for profits if the spread permits, leaving the non-ipo investors holding the initial loss. The seasoned trader will usually buy at the bottom after the IPO and panic selling from day traders occur.
In this case miners and the development team have the true IPO benefit in like vs like analysis. This is due to the fact that miners and development team pay IPO prices already (i.e. cost of electricity for miners), The Development team usually gets the biggest benefit because there cost are usually only payroll. Please do your research as I only post this as a professional. Investors that get burnt over and over again usually stop buying crypto-currencies. This damages the industry. Imagine exchanges with no investors. My advice: Buy after the miners and developers dump!
http://www.businessinsider.com/5-myths-about-ipo-investing-2013-10
And for the dev team!
In the real world IPO's or initial public offerings are designed to give clients/insiders a perk for staying with the firm over the years. The valuation has to be spot on so that the reduction in share price is beneficial to the client.
You can't set an IPO price for a crypto-currency since there is no real business history or established revenue streams behind it yet. I.e. Facebook revenues and client-base.
Even then once ipo's hit the market the share price usually plummets because the IPO holders usually sell for profits if the spread permits, leaving the non-ipo investors holding the initial loss. The seasoned trader will usually buy at the bottom after the IPO and panic selling from day traders occur.
In this case miners and the development team have the true IPO benefit in like vs like analysis. This is due to the fact that miners and development team pay IPO prices already (i.e. cost of electricity for miners), The Development team usually gets the biggest benefit because there cost are usually only payroll. Please do your research as I only post this as a professional. Investors that get burnt over and over again usually stop buying crypto-currencies. This damages the industry. Imagine exchanges with no investors. My advice: Buy after the miners and developers dump!
http://www.businessinsider.com/5-myths-about-ipo-investing-2013-10
And for the dev team!
That was predictable, 8k satoshi were too much for this coin.
Price dropping, already at 4k, 1-2k sat sounds reasonable for stabilization.
What you wrote is correct but it is only the rosy side of the story - dev sold coins in the IPO thereby retaining no stake and completely cashing out. This is not what IPO/ICO means. IPO proceeds are usually used for business development, but we have here a situation that the developer of the coin sold his whole stake and bears no scrutiny how the funds will be used, if any, for the coin development. IPO is not the correct term.
ICB = ISO = Initial Scam Offering
