
The first ICO unicorns are here - proofofstake
https://techcrunch.com/2017/08/31/the-first-ico-unicorns-are-here/
======
ruytlm
> The OMG token sale, which raised $25 million, took place in July and
> initially one OMG token was worth around $0.27. Today, the value is at more
> than $11, giving a return of more than 40X to anyone who bought in at the
> ICO stage.

> Another startling fact to note is that neither company has an actual product
> in the market right now. Although that is common with ICOs because investors
> buy into a product roadmap that will developed with the funds raised via the
> token sale.

No, don't worry, this isn't a bubble. We're just experiencing a speculative
soapy-water sphere situation.

~~~
proofofstake
> No, don't worry, this isn't a bubble.

Crypto is definitely a bubble. Perhaps one of the biggest bubbles to burst
when this happens four to five years from now.

> I need to start thinking of a few product roadmaps

I know you are being facetious, but it really is not as simple as putting out
a roadmap. Think about it: If you could pull this off, but are not doing it,
you'll have us believe you are willingly turning down millions. If you can't
pull it of, your comment becomes a cheap meaningless jab at things bigger than
you. Both options are quite unbefitting of HackerNews.

> You also have to write a whitepaper.

[http://plasma.io/](http://plasma.io/) Pay attention to mentions of
"micropayments".

~~~
Atheros
It's not a question of turning down free millions of dollars. There is risk.
If he puts his face on the operation he could be the subject of lawsuits if or
when it blows up. It's also possible but very expensive to do an ICO and not
violate securities laws. So he either puts fourth the massive time and capital
to do it legally or he risks heavy fines and lawsuits. The lawsuits will
probably come no matter what.

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ChuckMcM
Wow, they are _exactly_ replicating the mechanism that fleeced so many retail
buyers of stock in the dot.com bubble. It never occurred to me you could take
that experience and monetize it so effectively. I suppose I shouldn't be
surprised after I saw what the Mortgage industry did to student loans after
they didn't get as much money out of sub-prime mortgages as they had forecast.

~~~
Ologn
> Wow, they are exactly replicating the mechanism that fleeced so many retail
> buyers of stock in the dot.com bubble. It never occurred to me you could
> take that experience and monetize it so effectively.

Human nature hasn't changed much in the past 17 years, on either the scammer
end or on the scammed end.

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brndnmtthws
This is a bit off topic, but bear with me: so far, nearly every comment in
this thread has contained some degree cynicism toward cryptocurrency-related
funding. Why does HN have such a distaste for cryptocurrencies? Why can't we
just have an intelligent conversation about this new technology? Why do we
have all the negativity and downvotes for any remotely positive comments
related to cryptocurrencies?

This is super interesting technology, regardless of your prejudices, and just
complaining about it being a "bubble" doesn't add any value to the
conversation.

~~~
Kalium
A lot of people find the _technologies_ incredibly interesting and potentially
extremely useful. Similarly, a lot of people find the _uses_ to which those
extremely interesting technologies are being put to be at best questionable
and of marginal utility.

Are blockchains cool? _OH FUCK YES!_

Is people raising a lot of cash from suckers in a bubble-y market that
threatens to rebound on all of us cool? Some might opine that this is slightly
less than maximally cool.

~~~
brndnmtthws
Are you suggesting investors in other startups are not also speculators? Do
you think every silicon valley startup is destined to succeed and be the next
Google/Apple/FB?

The tech is cool, and the new funding model is also fascinating. Never before
has it been possible for everyone to participate in the early funding of
startups.

Sure, most will fail, but that's not different from the old model. The biggest
difference is that it's not based on cronyism anymore.

~~~
simonebrunozzi
Big difference: when you invest in a startup, you get equity and certain
rights. The founders can't screw you too easily.

With an ICO, you don't get any equity - you only get to use a service, maybe,
in the future. Most ICOs are therefore only a speculation.

~~~
proofofstake
From the article:

> The incentive for holding OMGs, is to take part in the network validation
> process. We also see a long term value/appreciation in the OMG price as more
> and more transactions take place on the network.

So you can stake your tokens for a cut of the transaction fees (much like
miners do).

------
imron
> initially one OMG token was worth around $0.27. Today, the value is at more
> than $11, giving a return of more than 40X to anyone who bought in at the
> ICO stage.

You too can become a millionaire from these penny stocks.

~~~
saalweachter
See, I'll play the lottery. I don't mind paying a dollar or two every now and
again for the EV- hope of being undeservedly wealthy.

But even with a 40x return you need to dump TWENTY-FIVE THOUSAND DOLLARS into
a highly risky investment to make a single million dollars. Christ on a
cracker, $25,000. That's a year of frugal living in most places. How could you
even ... ?

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continuations
All we're missing now is a Super Bowl ad for ICO complete with a cute sock
puppet mascot named Ether.

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mayank
Is it unfounded to see ICOs as a form of unregulated gambling? I'm thinking
particularly in terms of legal consequences for US-based entities offering
ICOs. Can entities like the IRS or SEC punish companies or individuals that
offer ICOs?

~~~
psyc
Their behavior is much more like penny stocks, the old fashioned vehicle for
pump and dump.

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tvural
There are likely some ulterior motives behind the way cryptocurrency is
currently being covered. If you have sway in a news organization, it would be
quite lucrative to invest in some crypto-related companies, and then encourage
all stories written about cryptocurrency to take a positive view. The
persuasion works best when it's hidden, like a story about a teenager becoming
rich by buying into bitcoin early. This is fine, but only if all such stories
come with a disclosure. Otherwise it's an ethically challenging position to be
in, like the rating agencies who kept quiet to avoid losing their clients
during 2008.

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nickjudge
This is now a pretty long comment chain, and not a single comment so far about
asset liquidity and start-up valuations.

So, the infinity:1 ratio of "bubble!" to "econ 101" doesn't speak well to the
thinking going on here.

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giarc
I wonder how many people are making 5 years salary in a month or two getting
in on these ICOs?!

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idlewords
This should end well.

