How do start-ups structure their ICO token allocation? How can I as an investor evaluate it?


#1

Long story short. It’s up to you.

Greed is a very real problem in the world of cryptocurrency and initial coin offerings. We have seen this type of behavior well before ICOs became the next big thing, and it will continue to cause problems for some time to come. In the world of initial coin offerings, however, there are quite a few worrisome trends worth keeping an eye on. Especially the correlation between the number of tokens in total and the small amount of tokens being sold is beyond proportions as of right now.

The ICO Token Allocation Issues

More and more ICO projects now only sell a small number of tokens through the crowdsale itself. That is not uncommon, yet these projects still aim to raise tens, if not hundreds of millions from the public. It is evident this business model simply will not work, yet these companies couldn’t care less about that. All they want is the easy money, by the look of things.

Unfortunately, it seems this trend will not slow down anytime soon. Although most ICOs issue far too many tokens in general, this new approach isn’t much better. In fact, it is possibly worse overall. There is no reason for any company to effectively expect people to contribute millions for under half of the token supply. After all, this seems as if these companies will cash out once the tokens are listed on exchanges.

Public allocation of ICO tokens is a serious matter. Right now, dozens of projects are taking the wrong approach in this regard. If the public owns 50% of the tokens or less, things are simply not working out. It is evident the people buying into these offerings deserve to own the majority of tokens.


#2

ICOs declare all the information before the sale begins. Its on us to be vigilant. Of course its a risk of the founders or team members own maximum of tokens, they can drive the price down whenever they want by putting sell orders.


#3

nobody can know what project will be 100% successful
all ico looks very promising
and does not matter how much token own founder and team members


#4

There are some projects which are and were clearly visible from the starting that they will be successful. Some are NEO, EOS and a new one QUANT. Even in bearish market, it is increasing daily.


#5

yes i have EOS and holding
i think this will be much profitable for me


#6

Nice. You are already rich I think. Don’t sell any coin in bear market.


#7

after the ICO period and the distribution of coins has been completed. the task of the team throwing the coin on the market. if the concepts and products are so great, the value of coins in the market will exceed the ICO value and that’s the investment return. Then the task of the team to make new offers to various countries to find new investors by offering a few coins and the rest of the new investors buy in the market.
So investors must know the project roadmap, as an evaluation.


#8

we waiting leax for exchange and wish leaxcoin do very well
and many new investors come to make leax own
i think leax will do beyond our expectation