Topic: Crypto project and value of the currency (Read 123 times)

It will not be easy. This is too high risk for most investors. There are problems with investing from different countries. There is a legal uncertainty of crypto currencies and other.

I am confused. I may be thinking too hard, or maybe not hard enough. I am fairly invested into numerous coins. Last few weeks/months I was able to track all kinds of progress related to each of the coin I invested in, whether it was bad news or good news, and everything in between.

I am starting to have doubts whether the relation between an altcoin blockchain project and its corresponding value is a logical one, or one that only exists for the purpose of making people money.

Let's say there is an ICO. A team pulls in 40 million usd and gives out for example 100 million tokens/coins, of which 60 million will circulate between people that bought in. Team keeps tokens/coins, which is the actual investment in that team. Team has benefit if the coins will be worth more, as they then will have more investment. So team will do everything to make sure coins gets worth more. Good news, updates, AMA's, website design updates and all kinds of other updates. Every time hoping to become worth more. But there are many other teams, often with similar products/projects. They will create bad press, or promote their product as superior. Tokens/coins rise and fall in value, besides the obvious link to BTC.

So, if this is how it works. Is this not a completely childish way to spend money on projects? How come those blockchain companies choose crowdfunding, if they could perhaps easily attract investors from financial institutions or through other means?

I am simply not getting why it is normal that a project goes up in value after doing a rebrand (why does this matter), a new website (who cares) or a pre-alpha test release of their iphone (only) app. Is this not a gigantic waste of time, energy and resources?

Not to be critical on projects, I love the potential of blockchain, I also love the fact that regular people are able to invest by means of crowdfunding or buying on exchanges. I however don't seem to be able to grasp the bigger picture, or do I need to just get over it and understand that it is in the end all about making as much money as quick as possible, no matter the project or future of the project (i.e. people making tons on coins with no real future).