We will ICO the tokens to investors, and people wishing to buy from someone on our marketplace, will need to buy the tokens via a public exchange (say shapeshift or someone like that). They're not buying the tokens from us. To reduce customer friction, we may provide an interface to a public exchange that exchanges fiat for tokens, but these tokens are purchased exclusively from a public exchange.

Hey Guys

Could REALLY use some advice. I am thinking of launching an ICO in a few months, for a real company, a real product. Given the current advice out from the SEC, it seems everyone (lawyers, VCs etc) is very afraid of being associated with any kind of token that returns revenues, profits, etc to token holders. I feel a little lost in how to design the the token to ensure that investors (like you) find a token valuable enough to invest in.

So I guess my question boils down to: How do I make a PURE utility token valuable to guy (or gal) like you? Would you really invest in a utility token?

I'll lay out what I'm thinking, and would really appreciate some feedback/advice on what direction I should go in.

What I'm thinking:
1) As a utility token, anyone wishing to publish on our marketplace will need to deposit a token with us. This reduces supply, causing price over time to increase.

2) People can buy apps on our marketplace and pay for them with our token. Tokens are purchased from a public exchange from investors, and hence this creates real customer demand for the token and expands the number of people holding the token - theoretically resulting in an appreciation in price.

Does this sound like a valuable investment? What do you think we can do to improve this, in a way that's fair to all parties involved (the investor, the customer, and us), but doesn't raise eyebrows at the SEC?

If knowing what we do is meaningful (not a plug), we allow people to build Ethereum Smart Contracts in plain English without any code. Given the other tools on our platform, this means people businesses on top of our technology like an insurance brokerage, or a smart contract for the guy you found on craigslist to walk your dog. So why would anyone use our marketplace? Someone can build the insurance app once, and publish it to our marketplace, and lots of brokers can being using it (or customize it to their needs without having to build it from scratch). The guy wanting to use it can pay the guy who built it with our token. Everybody is a participant.

Really appreciate your input!
Saj

I think the long term expectations of price inflation will depend on widespread adoption of Smart Contracts. If that future fails to materialize, the value of the token will collapse.

We're working on making that a reality. Building Smart Contracts in plain English that anyone can read will help business adopt and implement Smart Contracts quickly, safely, and in a transparent fashion.

I heard someone give a comparison of EOS and Ethereum. They claimed that the primary benefit that EOS provides is that the consumers of the contracts do not have to pay to use a contract. I agree, this is necessary for the adoption of Smart Contracts - another major factor that we are solving with Ethereum in the way our contracts are built.

Do you guys agree that the biggest value of Ethereum is Smart Contracts?
What sorts of things do you imagine they will be used for?

I'd love to read your detailed use cases.

Why are you guys buying this coin? What do you like about it? What does it do that you think is valuable?

I look for which ICO's contribute legitimate value, or solve legitimate problems.

So XRP solves the problem of cross boarder payments taking days to complete. IOTA allows people to transact between one another free of charge. These are real legitimate problems in my opinion.

I think giving people access to invest in early stage startups is a good thing. We're told that we have to have $10 million in assets in order to invest in such projects - but why? Are we really being protected? I don't trust that the government necessarily has our best interest at heart. Hence, I think ICO's are a GREAT innovation.

I personally invest in ICO projects that contribute legitimate value to the world. Each of us must assess what legitimate value for themselves, and naturally their are risks involved. But precluding retail investors from startups isn't fair, in my opinion. 

I came across an article this morning that, to me, really shows why the world needs a virtual currency. I'm from England, and there's a saying here that goes: "When America sneezes, the rest of the world catches a cold." The article discusses the history of the Asian Financial Crisis, and how we may be heading toward something similar.

It amazes me that we have a currency that can potentially protect us (working people) from global financial crises. This is unique and incredible time in history! 

https://www.rt.com/op-edge/398890-financial-crisis-asia-curency/