Initial Coin Offering

NotSoPositive

Transcript

1. Initial Coin Offerings (ICO) Big risks with huge returns Ryan Evans, CTO
2. What is an ICO? An initial coin offering (ICO) (derived form initial public offering) is a controversial means of crowdfunding centered around cryptocurrency,[1][2] which can be a source of capital for startup companies
3. Why All the Attention? Almost $3B so far in 2017!!
4. Entrepreneurs Love ICO’s Much better terms than traditional venture capital A great way to build a community of users while raising capital
5. Spectacular ICO Returns ETH returned almost 1,000x (in 3 years)!!! MTL returned as much as 40x (in 3 months) a very long list of 2-10x returns in months
6. Mechanics of an ICO Build a marketing web site Write a white paper Collect BTC or ETH - promote your coin Deliver ICO tokens Trade on exchange Buy a Lambo!!
7. Economics of a Crypto Whale Investor Acquired ETH or other crypto early Owns BTC or ETH at very low cost basis Playing with House Money Can handle technical and key storage issues Some are crypto BILLIONAIRES
8. Coins That Never Did an ICO Bitcoin ($125B) Litecoin ($3B) Monero ($1B+) ...
9. What’s Good About ICO’s A New Form of Credit Creation Coins go straight to the communities they serve Wisdom of the Crowd Usually a good indicator of demand Unregulated for Now A lot of innovation Immediate Liquidity Ability to exit once listed (~can be thinly traded)
10. What’s Bad About (some) ICO’s Too Much Money Raised Terminal value on Day 1 - Fat and Happy Team Unqualified Teams are Funded Some people are good at raising money, but can’t operate anything Stupid Projects and Outright Scams Some coins just shouldn’t exist Immediate Liquidity Many founders ill equiped to deal with a “public currency”
11. Thanks!