Dear fartbags and NextGenCrypto your assumptions are your assumptions, lets consider them for what they are.
When we hosted our token sale it was clearly stated that 20% of the Factoids were reserved for early investors, that is no secret, everyone before purchasing Factoids was able to find that information.
As David mentioned we cannot disclose the names of the people who participated in the early sale, is that what are you looking for, the names of the people?
Their funds helped Factom develop its software since 2014, without them we wouldn't have been able to be where we are now.
David also mentioned: The Genesis block will show the amounts of Factoids owned by all participant addresses that took part in the early sale (20%), main sale (50%), and the early contributors (30%).
That is where you'll be able to see where all the Factoids are.
The personal names are irrelevant to me. Nothing you did was illegal, it was just sneaky. The worst thing you did was create a bubble as the early investors pump up the price with public buyers.
You can read more about this scam here:
https://bitcointalk.org/index.php?topic=1158161.0The Factom crowd sale was a 1COP2COS (1st coin offering private limited, 2nd coin offering public sell).
Since Factom was one of the first to perform this 1COP2COS scam I will give you guys a break. The effects of this model were not tested yet. But from now on out I will be calling out all crowdsales if they try to perfom a 1COP2COS
An important thing to note about this scam is they rely on the argument that the early funds were required. This argument does not justify a private limited coin offering. Initial funds should be raised through the public. This would give the same private investors the ability to invest into the project.
If these same private investors are not willing to invest with the public then it proves this is an over valued bubble that no one should be investing in.
If the smart investors who know about this technology aren't willing to invest with the public then you should take their advice and not invest with the public either. Don't end up a bag holder wishing on shooting stars while the early investors are cashed out with lots of profits and moving on to the next project.
If thats the case, then every seed series A, IPO is a scam. lol
disclaimer: I know and met the factom guys, they are cool.
A traditional series A and IPO would be considered an ICOP2CO. Before the popularity of crowdfunding and the tech of the blockchain, it would have been hard to do business any other way than an ICOP2CO. Factom did an ICOP2COS which is different than a series A and IPO. The auction style "crowd-sale" after a private sale is what creates the bubble effect.
I will give Factom a break because they were possibly just the second people in history to do an ICOP2COS using cryptocoins. The effects of such a thing were not really known. How Factom raised funds created a bubble. Depending on how much pre-investments and efforts were put into this project, there could be up to 1.1 million $ of unaccounted money.
This cryptocoin stuff is the future. Just because Factom is a great project doesn't mean a few people can abuse the public for their gain.
Developers have the ability to include everyone at the same price.
The coin distribution is a very important thing for the future of a cryptocoin. Factom has extremely poor distribution. I would call the developers/pre-sale investor 50% premine a
"golden parachute". Of course the developers and early investors want this to be a huge success but in an emergency, such as new competition or poor user growth, the early people can exit for a nice profit.
I'm sure investors in these projects will realize this style of investment doesn't pay off well for them.
Projects running public crowd sales as the first step, an ICOS, will prove to work out way better.
There are better ways to raise funds and get projects like this built.
Fewer golden parachutes = more money to hire more developers to build more projects.Anyone thinking they were doing the right thing investing in this to get a good project built actually had the opposite effect. This type of fund raising puts money into greedy peoples pockets.
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