Bitcoin Forum

should we need institutional investors for private sale?

will you have more confidence for other projects who invested by private institutional investors?

Maybe most people will say YES, but it's against the spirit of blockchain :(

If you want to sell crypto you can sell at trading floors as well as you can sell them by private transactions between sellers and buyers best you should trade at the trading floor.

No, we don't. Institutional investors don't guarantee the success of the projects at a later date.


I guess. When institutional investors come in, it means that projects are considered potential enough to be successful.


Because those investors will have more tokens? I'm not entirely sure what blockchain spirit that you mean.

as a retail investor, I don't need it because most ICO projects give excessive discounts when making private sales to institutional investors

my answer will depend on the rules specified by the project for institutional investors who get discounts from private sales, I will say yes if the project has good rules to prevent dumps from institutional investors when token hit the exchange, I will say no if the project can't prevent it

What does it mean the spirit of blockchain? but if it should involve institutions to increase confidence and market interest why not? but whether they want to invest in ICO and also on regulation for investors from the developers of ICOs, many are watching ICOs with a few things because it is most likely just a tool to scam investors.

The private institutions that deal directly with the deal, I think that is not necessary. If there are companies that manage transactions that are safe and effective with third parties, it will be more appropriate because if the direct dealing organization is no longer confidential and anonymous.

When you mean the spirit of blockchain I want to believe you are referring to the decentralization and as it relates to project, I would say its really not bad as it seems because if managed very well, it can be combined with crowdsale in other to dilute ownership in that way, the 'spirit' of blockchain can still be protected. To set up a project involves a lot of funds just for mobilizing, designing website, drafting legal documents, cost of internet, attending events, press conference and all of those even to the point of forming a team. It might be too much for individual or group of individual to afford depending on their finances couple with the downward trend in investments in to pre-ICO activities.

With all of this put together, if an institutional investor could come up with the seed money to make the journey seamless and stress-free, I don't think there is anything wrong in going that route to ensure the set objective is met.