Not really no. I feel like everyone has this backwards. If this were stock in a company, the price of the stock is directly related to the value of the company (how much it has in assets).
Tezos is the opposite of the majority of these ICO's, the money isn't just handed out to the team who created the whitepaper, it is managed as funds for the network by a non-profit organization. You can think of the tokens as being directly backed by these funds in a way.
For most ICO's particularly all the ERC-20 garbage as of late, it's not that. They take your money, put it in their bank accounts and give you something useless in return.
And don't forget these area all micro-cap investments anyway. Linkedin the website was bought for 26 BILLION. Even at 200 Million for Tezos, it's just a tiny tiny marketcap with decent financial backing. Other projects are tiny marketcaps with tiny financial backing!
Tezos is the opposite of the majority of these ICO's, the money isn't just handed out to the team who created the whitepaper, it is managed as funds for the network by a non-profit organization. You can think of the tokens as being directly backed by these funds in a way.
For most ICO's particularly all the ERC-20 garbage as of late, it's not that. They take your money, put it in their bank accounts and give you something useless in return.
And don't forget these area all micro-cap investments anyway. Linkedin the website was bought for 26 BILLION. Even at 200 Million for Tezos, it's just a tiny tiny marketcap with decent financial backing. Other projects are tiny marketcaps with tiny financial backing!
Look at Ripple or Bancor. It stays low level due to huge market cap.
No, Bancor was a classic example of everything that is wrong with the garbage ERC-20 tokens. It was just a bad unworkable idea with nothing actually behind it. I think I recall 40 lines of code was behind the poorly conceived idea http://hackingdistributed.com/2017/06/19/bancor-is-flawed/
Tezos was in the works back in 2014 (code wise) and conceptually prior to even that. It has a tremendous code base and a large development team. A 200 million or 2 Billion of even 200 Billion market cap for a global system of currency will look like nothing.
Part of me is just thrilled that folks in this space can somehow think Tezos and these other projects are even in the same universe! That confusion might allow me to invest a decent amount into it before it blows up.
