
Everything you wanted to know about initial coin offering but were afraid to ask - schakraberty
https://www.techinasia.com/ico-overview
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koolba
> There’s also little legal protection for crowdsale supporters, if any. Last
> June, one of the largest crowdfunding projects in blockchain history called
> the DAO (Distributed Autonomous Organization) was hacked. The perpetrator
> managed to extract about US$50 million in ether, according to currency
> exchanges at the time, before core developers of Ethereum stepped in. In the
> aftermath of the DAO, there was no legal recourse, only a technical reset of
> Ethereum’s code.

Depending on their opinion on the subject of "the code the law", some would
consider those responsible for the resetting of ETH (to undo the DAO losses)
as the perpetrators.

~~~
Rmilb
"hacked" is definitely subjective. For anyone interested checkout
the"attackers" legal threat right before the fork.
[https://pastebin.com/CcGUBgDG](https://pastebin.com/CcGUBgDG)

Here is the HN discussion about it.
[https://news.ycombinator.com/item?id=11927891](https://news.ycombinator.com/item?id=11927891)

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JaggerFoo
Not everything I wanted to know about ICOs.

Every article I've read is from the speculator perspective, perhaps for
potential speculators. I am more interested in knowing about ICOs from the
organizational perspective:

After completion of the ICO, how are the crypto-currencies converted to cash
in the bank, so you can put the capital to work.

Is there percentage loss of capital when converting to cash, and is this
accounted for in the ICO model.

Does converting 10 to 50 million in crypto-currency to cash cause fluctuations
in the market value of the crypto-currency.

The project may require resources that only can be purchased with fiat
currency. And I assume people working on the project have bills to pay.

Has anyone documented how an organization deals with the crypto-currency that
as been raised via a token sale? I suspect that each organization has their
own method of converting crypto-currency to working capital.

~~~
skilesare
Sounds like a problem to solve. Reach out at r/Catallax subredit if you want
to talk about this more.

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DougN7
> a web browser called Brave pulled in US$51 million in less than 30 seconds

I highly suspect money of that volume was raised by a few of the early
adopters that are sitting on hundreds of millions of dollars of crypto
currency. No way was that crowd funding at work.

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sjg007
Interesting to see a market based alternative, one step above crowdfunding for
trinkets and yet not quite crowdfunding equity as defined by the SEC.
Blockchains definitely reduce the cost to "purchase" these tokens from a
company.

Still a duck is a duck is a duck right? I can't see why the SEC would not step
in and regulate these blockchain tokens. This is probably the reason to have a
primary utility argument for the tokens.

You can also see how the blockchain is going to eat the world.

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zby
This returns 403 Forbidden for me.

