
Ask HN: What is the business model of ICO? - chenpengcheng
Somebody just told me that they raised $16M in ICO. That is like a lot of money. How will the money be used?
======
RantyDave
* Make imaginary money.

* Sell it to people who've gone mad.

There is no step 3. It's not an investment, you don't own a portion of the
company as a result. It would be like selling monopoly money except that
monopoly is a trademark so that stuff's probably worth more.

------
Top19
There was a recent comment on Reddit that during the first dot-com bubble
there were a lot of people who just used start-up money to have fun. That
didn’t really happen a lot this time and people now in SF are super famous for
their irrational belief in their company and working 130 hour weeks ala
Melissa Mayer.

Anyway I think ICOs are like some start-ups in the first bubble, using the
money to party because no one is looking closely. After all, if you have a
great company or a shit company, you still raise the same amount of money. Why
work hard when you know the upcoming bubble correction will wipe out your
gains?

------
seattle_spring
I believe the business model is something along the lines of:

* start up

* cash in

* sell out

* bro down

------
gesman
As I see it - ICO is a very quick way to bypass 100% of regulations to raise
money.

As long as buyers are ok with potential to lose 100% of their investment -
everyone (but government regulators) are happy.

------
chenpengcheng
So it is better not to chase the fame. Build something which lasts:)

