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Title: ICO Proceeds into FIAT - Do teams do that? Post by: magpie_lover on January 11, 2018, 02:11:07 PM Was wondering whether teams doing the ICO/token sale convert the sale proceeds (mostly in ETH) into FIAT shortly after the sale. With the increasing volatility associated with crypto markets it seems logical to do so. If so, what percent of the proceeds are converted?
Disclaimer: Not involved in an ICO by any means, but just curious on how these things are done. Title: Re: ICO Proceeds into FIAT - Do teams do that? Post by: Bybox on January 11, 2018, 02:15:01 PM It depends on the ICO, you have to do your own research on it and read the white paper, for example some projects convert the entire fund to FIAT after the end of ICO while others only convert when they have to pay the team and the office.
Title: Re: ICO Proceeds into FIAT - Do teams do that? Post by: magpie_lover on January 11, 2018, 02:27:36 PM It depends on the ICO, you have to do your own research on it and read the white paper, for example some projects convert the entire fund to FIAT after the end of ICO while others only convert when they have to pay the team and the office. Thanks for the answer. However, most white papers that I've come across don't explicitly mention whether or when the proceeds are converted to FIAT, but they do mention how these funds will be utilised for development, marketing etc. Seeing Ether at ~1250$ these days, many teams have started to cut down their Ether targets proposed initially (when Ether was <500$). With this in mind, I do feel that many of them would have to convert a portion of the Ether raised immediately into FIAT to mitigate the risk. |