A Realization - Why All ERC-20 Tokens Are Shit

[OriginTrain]

With traditional shares, you own a part of the company. You have legally guaranteed protections in place that the board of directors of a company MUST have your best interest at heart at all times, or they go to jail. By us idiots (myself included) investing into ICOs whereby we forfeit all judicial and legislative protections that a company is MANDATED to have our best interests at heart, we essentially take on all the same risks as shareholders do, without any of the benefits. We essentially trust completely private enterprises that they'll always have our best interest at heart as token holders. Stop, pause, and realize how stupid we all are.

Take FUNFAIR for example. This is a huge risk investment with a lot of potential. As an early contributor, you get absolutely no equity, profit, or anything else in the platform, but rather simply the ability to purchase the token that will be used by casinos early. That's it. Investors like us fund companies like this from the ground up, and yet receive absolutely nothing comparable in return in the way of ownership and profit sharing.

Guys, we must all WAKE THE FUCK UP. Honestly. We must unite and STOP this practice whereby we invest in utility tokens. ALL ERC-20 tokens, and platform tokens, should be securities. Nothing else. We should all have ownership in a company we invest in, including sharing its profit.

None of these shit tokens offer any of the reward that we as investors deserve for the risk that we take. Absolutely none, unless you can cite me a specific ICO that gives you legal ownership of the company with the token, then none. The one exception are DAOs. Yes, these do confer you actual ownership, and I wish this is the direction that all ICOs would take, however they don't. Most ICOs are centralized and are not DAOs, and they will give you shit tokens rather than ownership shares that you deserve.

This is a realization we should all make. This practice needs to end.

[VB32Bit]

I disagree, they shouldn't be considered securities.

No one is being forced to invest in ICO's.

There is risk involved in almost everything you do in life, the last thing I want is the US government mandating for ICOs.

[shahani]

Why the word shit coin or shit tokens born? It is because of negative income to those people who invest and purchased tokens. Absolutely not all the time here in cryptocurrency business are gaining all the time, actually this is a business, lets consider also a few losses. So, if we failed sometimes, lets considered it as a sharp tool to become a wise and smart on this business.

[jaredl]

With traditional shares, you own a part of the company. You have legally guaranteed protections in place that the board of directors of a company MUST have your best interest at heart at all times, or they go to jail. By us idiots (myself included) investing into ICOs whereby we forfeit all judicial and legislative protections that a company is MANDATED to have our best interests at heart, we essentially take on all the same risks as shareholders do, without any of the benefits. We essentially trust completely private enterprises that they'll always have our best interest at heart as token holders. Stop, pause, and realize how stupid we all are.

Take FUNFAIR for example. This is a huge risk investment with a lot of potential. As an early contributor, you get absolutely no equity, profit, or anything else in the platform, but rather simply the ability to purchase the token that will be used by casinos early. That's it. Investors like us fund companies like this from the ground up, and yet receive absolutely nothing comparable in return in the way of ownership and profit sharing.

Guys, we must all WAKE THE FUCK UP. Honestly. We must unite and STOP this practice whereby we invest in utility tokens. ALL ERC-20 tokens, and platform tokens, should be securities. Nothing else. We should all have ownership in a company we invest in, including sharing its profit.

None of these shit tokens offer any of the reward that we as investors deserve for the risk that we take. Absolutely none, unless you can cite me a specific ICO that gives you legal ownership of the company with the token, then none. The one exception are DAOs. Yes, these do confer you actual ownership, and I wish this is the direction that all ICOs would take, however they don't. Most ICOs are centralized and are not DAOs, and they will give you shit tokens rather than ownership shares that you deserve.

This is a realization we should all make. This practice needs to end.

You bought it cos you were expecting to make a huge profit by selling the coins somewhere down the road. You do not share the same vision as the company that you bought into but you expect that the company have your best intents.

I think we all enter into any ICO with our eyes open. It is usually declared that it is an utility token or a security token. We are aware and we bought into it.

The risk of ICO is high and we took it cos we want to make a big profit.

Yes some lost money and some made a pile.. but we are fully responsible for our action.

I think the crypto world is a wonderful place and we have access to all the information to decide whether to buy into the ICO or not.

Read the whitepaper properly and invest properly.

Having ownership means nothing if it is a shit company.. I rather own utility tokens in a company with a great concept than shit ownership shares in company that have nothing to offer.

[jorenpo]

-snip

at the first place you are not force to invest to their ICO, they do a crowdfunding to the believers of their token. and also not all erc20 token are shit. look at ethos, dent, denta and many more

[civiszero]

Erc20 is a very easy and good way to start a new project on.
U will see in practice once the project develops some will move away from erc20 and move to their own chain for example vechain soon

[D ltr]

i dont think all ERC-20 Token are shit, it just the dev and project of the token are shit
Sometimes they care just to collect a money and don't want to make a progress with their project after that the token will become a dead tokens

[mazdafunsun]

to get the high reward you should have some balls to invest in the highly speculative crypto world. none is forcing to invest in shit, and you don't need to invest longterm, if we talk about small ICOs

[JeffBrad12]

I disagree, they shouldn't be considered securities.

No one is being forced to invest in ICO's.

There is risk involved in almost everything you do in life, the last thing I want is the US government mandating for ICOs.

US can't do anything for those are working in another country. They are investing on their own risk said by investing in ico and they agree with all of the risks will be involved in their investment.

The majority of tokens can be considered as security caused by the majority of them don't have utility usage. But will be a very wrong thing to implemented SEC compliance to the all of ico projects around the world.

[JeromeTash]

Not all ERC-20 token are shit. In business we mostly think only about profits but sometimes looses are also inevitable and just because a certain ERC-20 token of certain poorly coordinated project didn't give you any profits does not mean the rest of the other successful ERC20 tokens are also shit

[pranazzs]

Therefore, I follow ICO always using small capital.
I'd better buy a Coin that is already in top marketcap and I HODL.

[STIKS1911]

Not all ICOs are bad. Moreover, investing in any project, we understand that this is a venture investment. That is, there are high risks and high profits are possible. Everyone knows this beforehand. If you study all information about the project and conduct a thorough analysis, then I think you can find promising projects. And not all erc-20 tokens are bad. This is just a convenient and easy way to start your project. And if it continues to develop well, the project can move to its own blockchain.

[Brothersav]

Not all ICOs are bad. Moreover, investing in any project, we understand that this is a venture investment. That is, there are high risks and high profits are possible. Everyone knows this beforehand. If you study all information about the project and conduct a thorough analysis, then I think you can find promising projects. And not all erc-20 tokens are bad. This is just a convenient and easy way to start your project. And if it continues to develop well, the project can move to its own blockchain.

I agree with this comment the most. Icos that actually have a working product designed to use your tokens within the platform I think have validity. Not every ico needs their own blockchain. Darico for example runs in ethereum solely because it's a utility token and their programs need tokens to use it. Unlike other coin that Ned their own blockchain

[Duzenn]

I also agree with the comments, most of the time ERC20 tokens and don't have any value, the value of their existence is just hype and financing, in my opinion, in the case of the more strict law by national governments, and most ERC20 tokens will disappear.

[OriginTrain]

I also agree with the comments, most of the time ERC20 tokens and don't have any value, the value of their existence is just hype and financing, in my opinion, in the case of the more strict law by national governments, and most ERC20 tokens will disappear.

Bingo. The current craze and "we invest in tokens for huge profit" mania is based purely on speculative hype. 10 years from now when it's obvious most of these tokens are only good for utility purposes, their true value will emerge.

[limmousine]

very unfair if you blame the token erc20, this is purely a mistake that is from the developer. what we see now is bullshit, ico average just makes the developers rich. that's why many countries are banning ico, because the government wants the best for investors.

if you think ico make a profit, then continue, but if make a loss, then leave it.

[Maren]

very unfair if you blame the token erc20, this is purely a mistake that is from the developer. what we see now is bullshit, ico average just makes the developers rich. that's why many countries are banning ico, because the government wants the best for investors.

if you think ico make a profit, then continue, but if make a loss, then leave it.

Governments don't want what's best for investors. Governments can't tax the majority of ICOs. Governments LOVE ICOs that comply with regulations. Governments want what is best for the government.

Government is the enemy of the people. 99,98% of ICOs are also enemies of the people.

[kramat]

not all tokens erc20 is shit, it depends on the progress made. many tokens begin to be reinforced after ico is finished because the team is trying their best for the investors and some are just leaving them. then before joining the investor should check the ICO well

[Reez]

Do you also realize that the most return these traditional shares give is 10-20% in a year. That too if you are lucky. Now think about the tokens which if you had bough just one year ago, would have given you so much return that you wouldn't had to work again. There are people like you who cant see revolution happening and are fearful and cant do anything themselves and wont let others do too. If you don't trust something or don't like something about it than don't invest in it.

[leea-1334]

By your own definition, not all ERC-20 tokens are shit,,, they need to be securities to not be shit right? To be honest, I have one ERC20 token that is precisely a security, or at least, when it started out it was supposed to work like one. Of course, if the company just disappeared, I would be left with zero, but they were supposed to distribute profits according to shares of tokens owned. Well, it almost happened, but then they had to change their tokens to utility instead of security, so I sort of got screwed over.

I do not like utility tokens, because they create the use, and none of it is "real".