Talking about a real ICO, it's no different from Initial shares of a company in stock market.
While Initial shares are subject to yearly dividend and bonuses, tokens distributed in ICO has a variety of ways to payback the holders.
Some gives away more tokens as dividend, some reduces the number of supply by buying off and burning and some are subject to real life use in buying services or product and hence speculate a price rise.
Topic: How the future of icos, or token system is going to be sustainable? (Read 65 times)
March 23, 2018, 04:30:11 AM
Well every year even before the blockchain era, companies have sought to raise capital through venture capitalists and via angel investors, plus the stock market. Cryptocurrency ICOS are just like the stock market but in miniature form and it can go on and on, as long as there are investors willing to invest in these companies. The only difference with blockchain ICOS is that they raise funds through crypto currencies as opposed to the more traditional methods of investment. I do not think that it will just die overnight, but I do think that if we do not receive more fresh capitalization from an influx of new types of investors, not just get rich fast speculator types of investors, it might stagnate as it is doing at present as many tokens are selling way below ICO price once they hit the exchanges.
March 23, 2018, 04:24:02 AM
For a company raising money in a stock market it produces a yearly income report, where they pay their employees every year, hence the company will sustain. With icos the team get ico money, pays itself n team. It will have enough money for few years. Then it will have the reserved team tokens to pay themselves. What will happen once that reserved token allocation is empty. How will a coin sustain itself, who will be doing the marketing or keep a check codes or upgrade it?
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