What Annoys me About ICOs

Strange as it may seem, although I am an enthusiastic supporter of blockchain, distributed ledger technologies and cryptocurrencies, I do get irritated with them. The ones I get irritated with the most, are those that launch amid a fanfare of trumpets and hype, but which are years away from actual real world launch.

They have amazing White Papers detailing the what and how and even the timeline. I’ve read many of them, some I don’t understand as they’re written in a very technical way, mostly it seems for developers. Some are so well written and target the end user with almost pinpoint accuracy that it’s a pleasure to read them. They’re the ones that often pull me in, I can see so clearly the benefits to me personally that I want to get involved.

So I read the whitepaper, join their social channels and ask questions. I will then often write a positive piece about the platform and have often been asked if a presenter can use some of what I’ve written in their live presentations.

Then, I actually take off my rose tinted glasses and look at when the idea is going ‘live’. It’s at that point that my temper gets a little frayed. Because it’s at that point that I realise the system is still under development and, that it may not be possible to do all that they have promised.

I have been following some projects for a year or more, to date, only a very small number have actually been ‘launched’. That is, only a very small number are actually being used by people to do whatever it is that the platform does.

I don’t follow the gaming and gambling platforms as there are just too many of them and with such competition many will fall by the wayside. Plus, neither interests me on a personal level.

I look for things that will have a positive impact on my life should the system ever get off the ground.

So why do people launch their ICO when they don't have things ready? Is it because they're just out to make money they have no intention whatsoever of actually providing the DApp (decentralized application) that they talk about?

It's difficult to know because some of them are genuinely enthusiastic and excited about the idea that they’re promoting. They have vibrant communities who also believe in the system or the application that's being promoted and, I have to admit, that I too have been caught by that enthusiasm. The problem is the length of time between actually launching the ICO and bringing the system to market. Making it available for use by the general public. As an example there is a system out there for creatives, it sounds wonderful, to collaborate easily with others, to have smart contracts for joint efforts and so on and so forth. Yet after a year they’re still nowhere near bringing it to market, they are no nearer that creative person being able to use the platform to promote and organise their work.

The community is still behind them and still believes in them, some it’s true are getting a little impatient but the tokens are being traded on several exchanges so they’re still supportive.

Therein lies the rub, people are trading the tokens, and, one has to assume, are making a little profit. The question then becomes, are they supportive because they see the benefits or, are they supportive because they’re making money?

It’s a serious question, billions are being raised through ICOs, yet we now see some platforms being investigated for fraud.
https://www.engadget.com/2018/04/03/sec-charges-two-individuals-with-fraud-in-continuing-ico-investi/?guccounter=1

Distributed ledger technologies and the cryptocurrencies that are integral to many are a new frontier, just as the Dot com boom and bust made and lost fortunes for people, so will these new emerging and in many cases disruptive technologies.

It’s down to the industry to make sure they remove as many ‘bad apples’ as possible. But any individual who wants to invest should do a lot of research. Look beyond the website. The article link above is about Centra, a company which was going to provide a credit/debit card that would handle multiple tokens and allow you to spend in the real world easily. It had an impressive website but is accused of lying about the credentials of its core team and, lying about being in discussion with Visa and Mastercard.

You need to research each team member, check their social media. Follow the public channels and talk to others in the channels. Ask questions, not those that can be found in the FAQs, or the standard “When will it be traded on an exchange?” or “When will the tokens be released?” You should find this information on the site, in the white paper or on the channel.

Ask questions about usage, is the coin stable (if it’s going to fluctuate wildly, it’s not stable and is a huge gamble). Will you be able to use the token anywhere other than on the platform? How long before you can use it? The answer (or non answer) will tell you a lot. Ask how far development has gone, is there a beta version of the platform being tested.

Then ask yourself, can you afford to lose the money you’re thinking of investing. Some people have bought tokens several years ago and are still waiting for the platform to be usable. Is this sort of long term investment for you?

Make no mistake, cryptocurrencies are here to stay as this article shows https://futurism.com/marshall-islands-crypto-official-currency/

Venezuela has issued a cryptocurrency although it’s not the legal tender of the country as yet. Other countries have toyed with the idea, so we’re still in ‘frontier town’ and need to be vigilant on our own behalf.

I still follow and participate in chat channels with many platforms, some of which I’m sure will fall by the wayside. I’ll still get excited by a well written white paper that tells me why I should invest and, how it will benefit me personally. It’s almost guaranteed that people will still launch an ICO to raise money for an idea, and that investors/supporters will have to wait years before they know whether the platform was ‘real’ or a ‘scam’.

But I won’t invest in anything that has no working version, whether that’s a beta testing version or a basic no frills alpha version. I’ll look very closely at the team, especially how much they have invested.

Don’t ignore this technology, it’ll be impacting you directly, but don’t invest to ‘get rich quick’ it ruins your eyesight and allows scammers to fool you.