Are ICOs donations?

I would say no to this question.  In my opinion, these tokens are creating a loop.   First, we had crowd funding where one person would give/ donate another person bitcoin (to do some project) and that would be the end of the financial transaction.  Now we can give the original donor a token and it becomes more of a value for value transaction and possibly an investor.  Now, they can go on the market and get something for their token which should hopefully be more than zero.  As the markets get older, there will be investors with stronger hands looking to get tokens at the market bottom price as well.

Will people still create scams?  Yes, but now each project could have a market where people could get partial refunds if they get cold feet.  Keep an open mind.

So I hope the good guys keep creating small projects that bring value to the world and I’m going to keep investing.

One possible ICO future

These ICOs are the talk of the town these days as the raise great sums of money.  I want communicate one possible future where we don’t end up in a destructive crash.

Maybe we could run our own personal corporation where we raise funds by selling our own ICO.  Then, we could buy back the shares later on the market if we get positive returns from our actions.  It would take a lot of discipline, but maybe someone could pull it off.  The first thing that investors want to know is the total supply of tokens and are some more going to be created in the future.

This way of raising capital is better than taking a loan from a credit card, right?  What would you need to do to keep your investors happy? Do you need to be a master of PR and letting your investors know what is happening in your life/business?

If the investors need part of their funds back, they could sell their coins/tokens at the market price.  Would people crash your token’s market, or would your token become extremely valuable in multiples?  Well, I guess there are still more questions than answers.  Some people may make it through this time shining as a handful of companies made it through the dot com bubble.