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.
The 0.0024 USD price was determined by the number of tokens issued in relation to the amount raised. Had they raised more money, the price would have been higher.
They raised around $60 million USD and issued over 25.9 billion tokens.
No, what you’re describing was the price in October until around the end of November before the boom.
The ICO took place in Japan from 2015 to early 2017 and was much cheaper than that…
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
@Bessarabie So you’re basically telling me that me buying in at 320 sats in october was cheaper than the average ICO price? I would be very, very surprised… But awaiting the chart if you have it.
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.
Spoken from truth… but before you know it , Ada will be stabilized by those very whales.
The way the system is developing , the so to speak, lid being closed on volatility as much as possible by both stakeholders and developers , is somewhat unique in the space
@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.
The earliest risk takers always accrue more reward , because they are pioneers, it doesn’t mean you can’t just buy and hold and get high return on risk .
Think of alphabet … their vcs and founders captured a lot of reward available in the space before the public … Yet still , average Joe can capture some of company’s reward to risk by buying a share
CosmoX - like I said before -Ill post the chart in a few days - i can assure you its accurate! 290-550 sat, average near 400 - dont remember the exact nrs
