The overvalued companies of the ICO world

I happen to be finding so many ico projects extremely obnoxious, trying to raise a round that would give an approximate valuation to the company to be over $100 million dollars. One hundred million is not that much for the startup world, I would agree with that, but not just for an idea.

A company that wants to enter a competitive sector, with no working product to show, with an industry, where well established companies raise their C levels for $30 mil after five years of fairly successful business practice. A company is raising $50 mil hard cap for an idea and a not exactly open and clear business model, with no product, left alone clients in place.

“ICO investors” shall consider what they are putting their money in and not just throw them into anyone who screams “blockchain” loud enough. For me, it does resemble the .com bubble, where projects like pets.com were raising millions of dollars, advertising their products at Super Bowl and relying that the revenues will flow in.

Part of the lesson that the Bay Area learned from the .com bubble was that if something is on the internet, it does not mean it would automatically make profit: there should be a solid business model in place. Shall it stand true for the blockchain technologies? Perhaps this time it is different and basing any product on a blockchain will sustain any company profitable.