Bitcoin Forum

Hello Guys,

I am a team member of a hardware research and development company. We are working on potentially groundbreaking technology. We have a great team with outstanding expertise and a tangible working prototype.

We are looking ways to raise funds and one of the options (very tempting) on the table is to do an ICO. Yet our hardware does not have a natural connection to blockchain. Therefore our token would not have intrinsic value.

We have 3 options:

1. Equity token - the token holder will get a % of our future profits. We are also looking ways to give token holder rights to our patents.
2. Exclusive access / discount token - the token holder gets to buy our products with the token and/or gets a discount.
3. Go with more traditional funding options instead of ICO.

If such a company would do an ICO would you approve? Is it cool? Will it be frowned upon? I would love to hear crypto community thoughts and feelings?

Thanks!

It does somewhat kill the point, since you will be the only person able to validate the tokens (presumably), this then means it's a centralised architecture rather than decentralised. It also means that investors have to trust that you will honour the tokens. I'd read more into blockchain principles and hopefully this will make more sense.

Correct me if I am wrong but most of ICO-s have that same validation/trust issue one way or another? With few exemptions where the decentralised system (after it is assembled by a team one has to trust) truly has a life of its own.