ICOs take away a lot of credibility for a project. Mainly because the people who invest in them are complete noobies that are only interested in long term gains (they are “pump and dumpers” with 0 interest in using Cardano as a currency) - people with money and no interest in the technology.
So why were X million of Cardano offered to already wealthy people at a ridiculous price of 0.0024 USD? Why not open this or limit the amount of Cardano per ICO client? It seems to be smarter to let a lot of technically inclined people buy limited amounts at a very low price rather than let certain individuals who will do nothing to further the techology get a huge piece of the cake in the start.
In the end this all just makes the project look very scammy (like every other project where an ICO happened).
I have to agree that is is disappointing that they chose to have an ICO to raise funds, for two reasons:
As you say, once the value grows, these investors will dump and make a lot of money at everyone else’s expense. Result is the rich get richer, as usual.
The PoS algorithm means that the ICO participants, who presumably have the highest stake, will continue to be awarded more ADA as time goes by. Again, the rich (this time in Cardano and not fiat) get richer.
I’d love someone in the Cardano team to explain to me how they are addressing the above issues. I’m sure it’s something they’ve thought about but I’ve never seen a satisfactory explanation of why these are not problems. I hope they are dealt with somehow because I am a (small) investor and I am excited by the technology.
Many ICO’s are scams but many are legit. How do you propose a team fund and start a new crypto ? Do you think they can realistically pick and choose only investors that are tech savy ? LOL. I mean - cmon.
No CosmosX - i dont have the proof on this pc - but i can assure u. Price of ADA during ICO was 290-550 sat! Average was 400 if I remember that chart! Ill posted when i go back home - it was posted on https://t.me/CardanoMaingroup
Agreed, I think there is a perceptual confusion amongst some of this community … cardano is about as far away as you can get from “nefarious pump and dump” , and , while the early investors may liquidate a lot in the end, and indeed their actual return to risk is astronomical – any investors return to risk on this project is arguably the same… Because it is an approaching infinitely “safe” venture.
You look at other ICOs and say wow yeah all this money/value was created SO MUCH SO QUICK … they may or may not be “pump and dump” … but surely they are risk assets , which means the late in the game investors are not getting anywhere near as much return, risk wise.
Cardano is like the true safety chain … it has not and won’t perform like more speculative value plays
Some coins are created as a pump and dump but no coin, regardless of how good it is, is immune to pump and dump schemes. That is controlled by whales, not the coin team. Ada, as with all cryptos, is frequently manipulated by whales. When you see a giant sell wall, that is often what is occurring.
@CosmosX@Bessarabie Binance states that the ICO was $0.0024 I highly doubt that would be up there if it wasn’t true, that could cause some initial investors to feel like others got a better deal than they did.