no, that is not the problem with IEO, ICO,... and it is not the reason why they are considered bad or even fraudulent.
the problem is that regardless of what 3 words they choose to describe themselves, in the end they are raising funds to produce a token that has no reason to exist otherwise because it has no usages. then those funds goes in their pocket and they don't do anything else apart from releasing that token!
and that is the main reason why all of them always go down in price and eventually die after a while.
the problem is that regardless of what 3 words they choose to describe themselves, in the end they are raising funds to produce a token that has no reason to exist otherwise because it has no usages. then those funds goes in their pocket and they don't do anything else apart from releasing that token!
and that is the main reason why all of them always go down in price and eventually die after a while.
Applicable to those scam ICO's. But in a legit project, I beg to disagree, The raised fund is to support the laid out project proposal written on their whitepaper, the token is simply some decorative memento that can be used as utility or security and be traded in an exchange for the speculative investors.
Many thinks that IEO is somehow shady because the system force the buyer to buy at a higher price when the token is placed on sale and they failed to bag some tokens. But it is the investors or buyers choice as if the exchange forced them to buy their IEO. Others think that some exchanges favors whales and the deal was done even before the sale begins.
If you can compete with bots, I guess you can participate in this kind of event.
You can have the bot, I guess you might have time in your time. --> Oh no. I think you are right. But the IEO was originally born for the purpose of calling for capital. But perhaps many investors want to speculate and earn fast profits.
They defied everything to benefit themselves and forget the feelings of others. But if the exchanges want to be fairer for investors, they can set a limit on the amount of tokens. I am sure that the exchanges themselves also want to make a big profit so they allow whales to buy in large quantities
