Do you feel ICOs try to raise too much?

[juicyjanet88]

Hey, I'm interested in everyone's opinions on this. I find so often when looking for ICOs I come across something that sounds like a good idea but then am instantly put off when they all seem to trying to raise 10s of millions for something I would deem could be perfectly possible with only a couple of million or even less.

 Do you feel that ICOs tend to try and raise too much? If yes, do you think this is out of greed for their own personal gain or simply because they over estimate the worth of their idea?

 Do you feel there is anything we can do as a community to bring expectations back to reality? Other than waiting for ICOs to continually under perform and then eventually expectations adjust?

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[BureauChef]

Hey, I'm interested in everyone's opinions on this. I find so often when looking for ICOs I come across something that sounds like a good idea but then am instantly put off when they all seem to trying to raise 10s of millions for something I would deem could be perfectly possible with only a couple of million or even less.

 Do you feel that ICOs tend to try and raise too much? If yes, do you think this is out of greed for their own personal gain or simply because they over estimate the worth of their idea?

 Do you feel there is anything we can do as a community to bring expectations back to reality? Other than waiting for ICOs to continually under perform and then eventually expectations adjust?

Very well said sir. In the past, projects didn't use to ask that much money to raise. They used to limit themselves within a logical amount. Then they saw the hype around the projects. And they started to try raising whatever they can. Maybe the cost would be $1M for that idea, but they collect $10M for it interestingly.

[Occam]

Due diligence on the investors part is one solution. Some ICO's fly with just a white-paper and nothing else. These guys even get upset when you ask relevant questions and seem to forget that they are asking for money. If all the investors started asking for financial spread-sheets and projections, it would be immediately obvious if the ICO's goal was over-capitalization. You don't need 200 Million for a venture if it can be achieved with 1.5 Million and 200K for unforeseen events. So 1.7 Million is all they need.

They can even have a second round of fund-raising if it is required later on. This way investors can see the progress made compared to the projections made previously and even have a rough idea of their expected return on their investment. If all is well then the second round can be started.

If the founders over estimate the worth of their project, these financials will bring them back to earth. Blatant over-capitalization is a well known red flag. You could check out a Prospectus from a real company running an IPO to see what I mean.

To bring expectations back to reality, all you can do here, is start asking the hard questions. If you are not satisfied or they ignore you then move on. Your money is still safe.

The other solution is government regulation, which could be a bitter pill to swallow in this space.

[riffaz]

of course they are expecting too much..

look at the ICOs nowadays.. minmum hard cap is 6 million

do we really need 6 million dollar to create an app or trading site which they advertise on their white paper?

[AiloveYouks21]

of course they are expecting too much..

look at the ICOs nowadays.. minmum hard cap is 6 million

do we really need 6 million dollar to create an app or trading site which they advertise on their white paper?

they want to cover the cost of their ad campaign , i think.

[Acguy]

Way too much they are definitely over reaching but there's no repercussion for them doing so.

[hdclover]

Yes 99% of the ICOs are raising way too much money than required. I've seen some social networks ICOs raising 5 - 6 million. It won't even cost a fraction of that. I can build a better network with only $10000! Lol. They raise too much of money so that the team can be millionaires. I've just given you one example but there are 100+ ICOs like this.

[Occam]

Their advertising budget should be defined and broken down in their financial projections. It's not hard to specifically cost out future advertising budgets.

There may be repercussions for them in the future if people vote with their feet. Or worse for everyone if the government steps in.

By the way, I'm not talking about any specific ICO, just generalizing.

[sozvdhua]

In recent days, the ICO market is picking up. I think we can try out a few good ICOs, but you should still be cautious because many scams are here and there. I guess before Christmas, the bull market may come.

[Rocky Handsome]

Every ICO have their different agendas put to the table. Keeping that in mind, the investors who gets interested in a particular ICO might invest a large stash into it, which aggregates to raising a lump sum.

So I don't think they raise too much. It's a matter of perspective here. They raise just the right amount.

[Bessta]

I guess due to lack of government regulation vis a vis implementing guidelines on ICOs.  I think at this point of time where  ICO market is flourishing, government  should step in to put the necessary safety nets and to level the ICO playing field.

[Bastime]

Altcoins will eventually rise but not this season and even Bitcoin is already overrated in terms of value and price and I believe Altcoins have good future and ought to be increased the market cap and coin price but it will all depends on the core team. While some Altcoin are dying today but still there are more Altcoins that supposed to be recognized as an alternative Bitcoin to invest.

[Latrix]

Humans are greedy beings. So I guess its marked up and profit from the expected cost for their project. I guess their initial effort cost as well. lol

[joselitobayagbag]

Fake ICOs are indeed trying to raise too much money for their own greediness,the real ICOs doesnt have enough funds to support their own project thats the fact many of ICOs are created to scam more people.

[tdeannova]

Hey, I'm interested in everyone's opinions on this. I find so often when looking for ICOs I come across something that sounds like a good idea but then am instantly put off when they all seem to trying to raise 10s of millions for something I would deem could be perfectly possible with only a couple of million or even less.

 Do you feel that ICOs tend to try and raise too much? If yes, do you think this is out of greed for their own personal gain or simply because they over estimate the worth of their idea?

 Do you feel there is anything we can do as a community to bring expectations back to reality? Other than waiting for ICOs to continually under perform and then eventually expectations adjust?

If the project is potentially good in the future, why not. There are many ico available today, but only a few are worth striving for to succeed, so his project can run according to plan and roadmap.

[Tornand]

Actually I don't think 6 million USD is too much money to raise a company with a good product. The sheer amount is not telling anything.
The problem is that many ICO founders are not planning to invest this money in their product and rather take it for themselves...

[Lord casanova]

indeed. they try to raise way more than the expectations. I think they can build a good product even with 10 million.

[kevindjunaidi]

I think it's natural that ico raise very much money, because every time I follow the project I see the project really needs a lot of funding, so I think it's natural that all ico projects target hardcap very high, but not all projects there are also projects that only collect funds only slightly, so depending on the project to be made whether it requires large funds or not  

[Occam]

Humans are greedy beings. So I guess its marked up and profit from the expected cost for their project. I guess their initial effort cost as well. lol

Nature of the beast and you are right on the money. However, if they are genuine, most start-ups are happy to make a profit in the years to come, not right from day one.

Sometimes, a good question for the founders is "How much of your skin is in the game?"

Do they lose their house if the project fails.

[DevelopmentBank]

Good topic. Yes, ICOs raise too much it isn't even logical anymore. Seriously, web-based and software projects have very little risks and unexpected expenses as compared to construction or fast moving consumer goods. I really don't understand why some ICOs need a billion dollars just to so developers can code.