Topic: I need a reality check, is an ICO right for me to fund a business? - page 2. (Read 938 times)

Be careful with your decisions, I've seen a lot of businesses taking advantage of this market to find investors. And after they accomplished their goal, the price of the tokens quickly fell to the ground and no one used it.

If you want to fund your business with ICO, it's better to prepare a clear project scheme or product that is convincing and promising. I think for now it's better to make a private sale or an IEO on an exchange. almost 100% of projects that run ICO fail for now, because it is no longer the ICO era for several reasons. what the investor sees first is definitely "product" and then reviewing the project, whether it can be profitable or not. before thinking about crowdfunding, you should develop ideas related to your project first.

That all depends on the project or business you are founding. People will invest on a ICO if it's something they know that it will earn them money. But for a fund raiser? i don't think so. But if it's a business with something with return for the investment like fore say 50% off for every $500 invested in the ICO. which can attract investors especially if the business isn't crypto-related.

what I fond find difficult to understand here is.. " what will be the use of the token" ?? there must be some use case for this token..  is the food been giving out for charity purpose? or is this business oriented .. if the token doesn't have a use case.. then it's just another shitcoin that will die in a short period of time..

I think it is not a charity, He has stated his business plan, and those free foods is probably some marketing promotion such as for every x number of orders, y number of food will be available to feed those who are in need of food.  His plan is somehow sound since the food business is quite a good choice.  It is one of the daily needs of people and with proper marketing and management, there is a huge possibility of success.


Actually tokens in a blockchain is a good way of determining the share of a person.  You just need to look at the blockchain and you can see the addresses that owns the token and it is quite easy to distribute profits to the holder.

You have to understand what blockchain is. It's not like a share that you can distribute to your investors base on what you have said. It's where bitcoin and any other coin runs. It's the network for most cryptocurrencies so it's not like an asset or dividend that you can give to those people that's longing to invest or buy a share with what you're trying to discuss here. As I have said, as long as there is no business model and profitable service or product you'll going to offer, it's more of a charity.

The return they get will be in half of their total investment, or the value of the company, maybe a coin isn't it but I think block chain can work somehow. I guess I have to do the math before I raise any funds obviously, but I'm just trying to imagine a community program funded by the people that have partial ownership in that company. If it takes 100,000 people to raise a $1m, and it takes $500,000 to hire employees and run the company say, the other half of the valuation of company belongs to the 'donaters' the reasons I'm calling them investors is because there is a possibility of a return even it's not the most lucrative investment. But if 200,000 people contributing monthly are now valuing the company at $2m then the early adopters have made their initial investment back, and as more people subscribe the more the company can thrive in communities and the more wealth early adopters can accumulate. I guess I have to find out what other incentives the 'donator' gets other then a peace of mind of feeding the hungry and shares in the company, I'm thinking of some type of product mailed to them could be more of an incentive. I guess I'm imagining it like a program you opt into as if it were some type of tax, and at the end of each year you can get some type of 'tax return' even if its not your total investment. I feel like there's something here, I just have to work out the economics of it,  because if it is a non-profit the $10 a month subscription (or any donation) would be a write off to the contributor.

1 in 7 people in America go hungry everyday.

It's not a business if it's non-profit. And you shouldn't call people that contributes money as investors, they should be donators. Because both words have a different meaning and being called as an investor, there's an expectation of a return of something from what they've invested in.
No investor will invest when the distribution of free meals to people once done, it's already done. I think that you have to clarify that to your donators instead of calling them investors.

It'd be less of an investment to gain wealth than it would be an investment in the belief that no one should go hungry. Like subscribing to Netflix for $10 a month gives you content, subscribing to the food service gives you peace of mind and ownership of the company providing the meals. It'd be in the interest of the investor to talk about the service with others so that more people contribute thus increasing the value of the company. It's a long shot.

I don't understand how you intend making money from your business because you clearly stated you want to be giving food to poor people free ones in a day. When you source for partnership from investors and issue them a token, how do you intend getting profit from your business ? Or when the initial token you issued to get money for the food business is distributed completely and you are done with the previous money invested, you are going to raise another fund. From experience about project startup you are going to end up with a project that is not sustainable and will latter result into shit tokens that will be massively get dump in exchange and later get delisted

ICO is not the right initial offering to raise funds for new project is either you do IEO or STO which investors trust these days. However, i think base the project only on food makes sense because the current pandemic will soon or later lead to food shortage but if you're planning run it as a crypto related project will need to add more feature which will make crypto community to have interest in the project, it will even give your project more utility/support.
In the meantime, you'll also need legal advice in terms of the SEC etc rules and regulations since you're from the US.

1. You call it "business", but it actually sounds more like charity, so which is it?

2. Your token has no utility, it's a share in your hypothetical company, but it's unclear how would it generate profit for investors? And what are the guarantees that it will be distributed?

3. Your token will be an unregulated security, which will attract the attention of the SEC.

4. No one is going to give 1mil to some anonymous guy's ICO these days.

5. There's no hunger problem in America, no one starves to death, the existing solutions work just fine.

Big companies joined ICOs mainly because it was a smart way how to legitimate your money when we look back into history, we realize that most of the money comes from money laundering.

ICO had lost its attraction among this forum members after uncountable scammy projects. So, ICO may not be a right thing for anyone who are even honest with dreaming about real business with innovative concepts. The chances for an ICO to reach its hard target of funds to be raised could be less than 33%, I mean you may get disappointed if you plan for ICO instead of focusing on developing your project to a least level with available funds.

ICO may be a right choice for the people who may expect reserve funds for their project development. Because, they may reach their roadmap even without funds to be raised out of ICO. Or, you may need to work in a way to gain faith among this community and then you may get your ICO plans may get succeed.

so how investors will be benefited with your ideas if your business Wil only give foods for free?
Its mean they can only get the  ROI they want base on the market value which you don't even know if the project that you will be created will have a value in the future , or it will  the demand you are assuming to have.

The business that you are going to set up is not new and you are going to fail because you did not gave us an explanation on how the investors can get his investment and how the community can benefit from your project, if this is only a charity project, then do it as a charity works with no investment involve, investors are investing in a working platform, products or services.

I suppose I'm relying on good faith of the investors to continue to contribute money into a business that feeds people for free, the more investors that are attracted to the idea the larger the market cap grows thus improving their ROI long term. Which is different then giving it away to a charity and never seeing a return at all. It is all cash out, the only cash in is the investors contributions and donations here and there. It'd be set up like a non-profit, but as soon as the money stops flowing, the business is done. 

You do not have any business with ico at all.
To fund a business, the first source of income should be your capital, followed by funds from private investors, then followed by crowdfunding processes.

You need to have a good project to stand a chance to earn funds through crowdfunding.

You need an actual product, an actual thing that already in work to impress and convince investors to launch a successful ICO. If not, you won't able to meet your ICO's goal. Many ICO first come out as very straight forward but because they lack anything works and all just concept, work-in-progress so they fail and ICO becomes a place that only scammers tries to run their pathenic (((ICO))).