From reddit:
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Hey, I've been lurking on the ICON ico's Telegram channel, and some argue that for short term investors, ICOs using the Bancor protocol
aren't worthy of ICO investment. They argue that prices will drop, once the DEX + bancor formulas kick in.
Speaker #1, I quote:
Yeah and the price on Etherdelta will be higher than the ICO price because many people who missed out on the ICO will try to buy some. But when the DEX comes online and starts offering 127 million ICX at the ICO price, the price will quickly fall to ICO levels if it hasn't already. It will only go up when the ICON network is utilised and that will be next year. That's my concern: the ICON team haven't told us why the ICO is a good investment when it seems likely we can just buy for the same price later.
Speaker #2, I quote:
No you are completely wrong. The market determines the price, not a formula. Bancor formula provides liquidity as a automated market maker. Just because there’s a “Price” in the formula doesn’t mean that the formula is the determinant of the price.
https://imgur.com/a/oewCXWho's right in this case?
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I've just been reading the whitepaper for ICON, Korea's biggest ICO which starts on Monday. It seems like an ambitious project with a (huge) team and multiple partners in different industries, so potentially it's a great buy.
But I'm a bit confused/concerned about what exactly determines price of the ICX token. It makes it clear that transaction fees are not passed on to ICX-holders (no staking), and furthermore the price appears to be determined by the "Bancor formula":
https://imgur.com/a/AYpM3Can someone ELI5 what this means in terms of price of the ICX? It seems that (unlike OMG) it won't go up with market forces because no one will buy on an exchange when they can get it for this fixed price directly from ICON.
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