Well, I see from the OP that not only will investors not be receiving any of the extra coins that may (or may not) be available if the ICO does not sell out, but they won't even be destroyed to shrink the float. I moved some BTC to C-Cex to purchase, but will now just wait to see how it goes on the open market. It was already a little pricey, in my opinion, but that really seals it.
I sometimes wonder what developers are thinking. The whole idea of raising money is to make it as attractive as possible for early investors. This not only makes it a fairer deal, on a risk/reward basis, for the potential investor, but it can also drive demand. This demand in turn gives the new issue (a coin in this case) a sense of high demand and momentum heading into its launch. This is not some revelation that I have made up or some griping out of thin air from someone who invests, it is the time honored way that money is raised. There is a reason that investment bankers purposely try to price a new stock below what they think it should trade at. And obviously, it sure ain't because they want to make less money.
For the record, promising returns from an ICO is technically illegal if you are not registered with FinCEN, so anyone who does an ICO and promises returns could be breaking the law. That is why when we issue shares in Coin Proz, we will accept ProzCoin for shares. That way early investors get the incentive of being able to trade for actual assets which DO promise returns, but as I said doing that with an ICO could potentially be highly illegal. We had covered it earlier in the thread, but I had written an article that address the Oculus Rift debacle:
http://thecoinfront.com/iculture-marketing-the-individual-to-the-masses/"A recent example that has spurned crowd-funding enthusiasts is the acquisition of “Oculus Rift” by Facebook for $2 billion USD after the project was created from crowd funding. After over 10,000 people invested in the project, the large acquisition yielded them nothing but “sincere thank yous” and “t-shirts”. While it can be debated whether the original investors are legally owed any dividends from the sale to Facebook, it seems clear that Facebook will receive most of the credit for the project’s success. It seems there is a paradox within counter-cultural movements to try and move away from old paradigms, but simultaneously needing the validation of the culture from which they are trying to move away.
Within the crypto-currency community, one example of this would be the largely held desire to move away from the central banking system, and the simultaneous desire to attract “Wall Street” investors to give digital currency legitimacy. On the one hand, the technological innovators want to create new systems to replace the old ones, but conversely they need start-up capital which often resides with the entities whom the innovators are looking to replace. "
Also, if there are a few coins left at the end of the ICO, we have considered the burn as an option.
Chris
