Topic: Shady ICO's - still funded, are we really helping the industry? (Read 147 times)

Instances like this are the reasons while I am glad there some regulation on ICOs in some parts of the world. And no, funding cryptocurrency scams like Prodeum is not just helping the crypto ecosystem in any way. This bandwagon effect by gullible people of investing in every ICO that pops out daily just needs to stop. I have seen an ICO which the team claimed their token does not have any use but investors still funded the project to the tune of $700 million! That's just crazy!

Because most of the new ICOs coming out is only created to raise funds,its all about the money the developers doesnt really care about the project if they raised huge sales,probably thats the only time these developers are going to be serious,the supply isnt the problem the developers and these greedy founders keep creating shitty projects to raise money,even they dont have any good working product.

yes of course with the ICO in collaboration with blockchain or a smart contract that is done with ETH or Blockchain then the company will get the development capital they need and not only that we can also benefit when buying ICO they offer.

That's the problem of the massive hype in ICO in the past year which is around June/July where multiple ICOs just went boom and everyone who got in got free profit.

This results people to think that ICO is a free money service but in reality, its not. If we ever look through all or i can say Most of the ICO. We can see that most of them are just empty promise, futuristic ideas. I am not saying they are not be able to produce something that would be working well for the future.
However, it is not easy to success, especially in the Fintech field like Blockchain

Yep, absolutely! Take a look again at BitConnect, how can you not tell this was a scam? Smelled it from miles away, and worse than anything else, look at OneCoin, oh my goodness, the owner raised 1Billion dollars in one year!!! Off of a coin that was never ever even created lol She literally spent 50 bucks, 20 minutes and launched a standard contact, wallet and sold these tokens with promises that it would be the next BTC, she turned the company into an MLM and all of these fools sold the coin and marketed it like it's the next big thing. 1 BILLION DOLLARS she raised lol and pocketed every bit of it. Unreal!

Hopefully the things will change after Facebook, Google and Instagram will stop advertising ICOs. They had absolutely zero moderation and were the main sorce of all those garbage ICOs (and phishing sites by the way) because it is hard to get listed in ICO listing websites for such projects and they will be immidiately blamed after creating a thread on this forum.
This is the ICO frenzy that have nothing in common with the free market.

Not everyone is as financial savvy. That is why governments step in with regulations to protect the retail investors. And many are lazy or just opportunistic, they don't care much as long as they can make quick profit. That unfortunately is how things are now.

We kinda live on the idea in crypto that we are a free market. When ppl invest in shit like that, they will lose money. Thats a fact. But 1 in 10000 projects really get their shady idea going, and end up being a really successful company, all the ICO participants are millionares. Thats why ppl invest without doing the correct fact check.

Well I guess we already have some newbies getting screwed so far. Bitconnect was a big (obvious) scam, yet so many newbies fell for the Ponzi. I guess at some point people will be educated. This happens every couple years. A big surge of new people then a big surge of scams. Everyone should be up to speed soon I guess. It's getting to be that time again.

Infact ICO has changed themselves to a much more systematic way to scam people. On a traditional ponzi, initial user had to be merited to attract new investors but in case of ICO, people themselves manipulate the price of token in exchanges while operators occasionally update their twitter handle while enjoying their vacation in exotic places.

It's just mind boggling, I'm sitting here spending days and days for my financial projections, spending oodles of money on my whitepapers, pitch decks, business plans, projections, making sure every penny is accounted for, coins get burned, no one can hack or steal and my investors are all solid and while I study the top ICO's these guys did none of that and have 300M market caps - massive face palm. I mean look, it makes it easier for legit guys like me because hopefully when my ICO drops people will see the solidity (see what I did there lol) behind it.

We can't be this ignorant, we need further education on a financial level being provided to these young guys buying whatever coin that hits the market - but I guess this is the age of hungry, get rich quick schemes.

The answer is, yes people are ignorant. A brand new business with a catchy sounding idea with 1 dev who can say the technical mumbo jumbo and all of a sudden you have a $100million business. It's kind of a joke really, but newbies want to be an "early investor" so they go for something new. The thing that people don't want to think about is the fact that 90% of these are vaporware that will fail miserably in the end.

As a fan of the decentralization of currencies, ICO's, crypto, whatever other names this industry has I have to admit that we supporters are also possibly a reason the regulators want such a piece of the skin. In my research of launching my own ICO, I evaluated a lot of ICO's, in fact some of the biggest ones, and almost every single one of them has massive inefficiencies in their financial projections. I'm a wall street guy and have done many IPO's, been a part of them, and helped with them - I'm used to reading 500 page prospectuses, and now I find myself looking at illustrated whitepapers which is fine, but why doesn't anyone stop to look at their numbers? Look at the price they are offering their first private raise, pre ico etc, the number DO NOT add up to their total distributed tokens or amount allocated for fundraising, it's almost as if they have zero experience and just make an ERC20 token, smart contract, pick a number that sounds good in terms of total tokens and set a random price, well it doesn't work that way lol You need proper financial background that adds up, otherwise it's so easy to steal coins intracorporate level and dump them. None of these guys have their numbers really matching up. So with that being said, are we just ignoring this because we want to buy their tokens and cash out - or are we ignorant? What's the real answer here?