With the birth of the blockchain movement it seems new companies are popping up everyday in almost every sector of the digital world. Companies have an idea, draft a white paper, and spring into action with their initial coin offerings. But the question arises that too few people ask; is this a creation of necessity? Or am I being sold vaporware?
There are 4 types of ICO’s in the market today:
Turn and Burn: A group of individuals create a pseudo company (or no company at all), scrape together a whitepaper (or copy another) and go straight into a token sale launch with a basic idea. The issue is they either don’t have the knowledge to pull it off, don’t need blockchain to build their product, or have no intention of ever delivering a live product.
Riding the Wave: A legitimate company goes into a token sale built upon a popular blockchain (i.e. Ethereum) with the full intention of switching to another blockchain after the token sale. This allows them to ride the wave of popularity around the distribution of a specific token (higher token sale result) while knowing full well that it will never go into production use.
Young & Dumb: While this group does have a chance at succeeding, they have rushed into a token sale to chase the money. They have placed thought into their idea and their white paper, but it’s based on hopes and dreams with nothing built out. There is full intention of bringing a product to market, but conceptualizing it into reality is beyond their current motives.
The Realist: This group has the best chance of succeeding. They have either started to build or have built out their blockchain-based application, they are organized, and have a full plan on how to take their product to market.
The problem is that no one has a giant sticker on their forehead. On the website of these ICOs you won’t find statements that say “We are Riding the Wave!” Unfortunately, nothing is black and white and you have to read between the lines.
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