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Author Topic: Two critical issues: liquidity and volatility  (Read 111 times)
krauzzer02
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April 07, 2018, 12:42:09 PM
 #21

«That’s what’s happening to today’s ICOs. They are raising an eye-watering amount of funds (over 1 billion in 2018 alone), but once the funds are in their wallet, it’s incredibly hard to use them in a practical way.

Here are the two critical issues: liquidity and volatility. The former breaks down like this, I raise $1 million in ETH but I can’t use it to pay my rent. The latter, I raise $1 million in ETH but its value could drop drastically in the same afternoon. Now I’m asking myself….»

Read full post: https://medium.com/@globcoin_io/what-can-icos-learn-from-the-electrification-of-cars-326ee5a63139
I'm wondering I've read this thread before anyway if you are going to have an opposite perspective on this: ICO's accepting cryptocurrency which has established a strong community, capitalization, and adaptability liquidity is not an issue if they are going to choose the right coin for the payment methods. The same thing with volatility, cryptocurrencies like bitcoin and ETH are the most used to buy tokens to fund the projects, volatility is the concern cause it may go down anytime but to view this on the bright side, let say you've managed to raise $1 mln in ETH and bitcoin in the bear market season, we can expect that anytime bullish trend will strike and that would be X5 or above.

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April 07, 2018, 12:49:33 PM
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The money collected on the ICO will always be used. The only question is in whose interests, investors or managers.
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April 07, 2018, 04:19:44 PM
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«That’s what’s happening to today’s ICOs. They are raising an eye-watering amount of funds (over 1 billion in 2018 alone), but once the funds are in their wallet, it’s incredibly hard to use them in a practical way.

Here are the two critical issues: liquidity and volatility. The former breaks down like this, I raise $1 million in ETH but I can’t use it to pay my rent. The latter, I raise $1 million in ETH but its value could drop drastically in the same afternoon. Now I’m asking myself….»

Read full post: https://medium.com/@globcoin_io/what-can-icos-learn-from-the-electrification-of-cars-326ee5a63139


Hmm.. Pretty interesting project you have there, really caught my eye. It would be pretty nice to be this sure with all your crypto funds. The thing is, by having this assurance, you sacrifice the chance to get higher profits just because you wanna be safer. Not that I am saying that it is wrong but it would clearly take away the though of earning more due to the volatility of this industry. But still, this project can be used into greater advantage by traders if it's fees will be minimal. I think this project is worth a shot, I will be keeping an eye.

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April 08, 2018, 01:08:55 PM
 #24

«That’s what’s happening to today’s ICOs. They are raising an eye-watering amount of funds (over 1 billion in 2018 alone), but once the funds are in their wallet, it’s incredibly hard to use them in a practical way.

Here are the two critical issues: liquidity and volatility. The former breaks down like this, I raise $1 million in ETH but I can’t use it to pay my rent. The latter, I raise $1 million in ETH but its value could drop drastically in the same afternoon. Now I’m asking myself….»

Read full post: https://medium.com/@globcoin_io/what-can-icos-learn-from-the-electrification-of-cars-326ee5a63139


Hmm.. Pretty interesting project you have there, really caught my eye. It would be pretty nice to be this sure with all your crypto funds. The thing is, by having this assurance, you sacrifice the chance to get higher profits just because you wanna be safer. Not that I am saying that it is wrong but it would clearly take away the though of earning more due to the volatility of this industry. But still, this project can be used into greater advantage by traders if it's fees will be minimal. I think this project is worth a shot, I will be keeping an eye.

You're probably right in everything you said. Globcoin CEO has said in a presentation that they're "not looking for short-term winners" and their Whitepaper also says something like "they do not recommend to buy their tokens with speculative purposes". It's clearly not one of those projects that will feed from the market hype and I even dare saying that it's targeted to investors whose gains do not come from volatility (and are rather trying to be protected from it)
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April 08, 2018, 01:20:20 PM
 #25

We all know once we enter crypto market volatility is something that we cannot prevent nor eliminate. But with regards to liquidity we can do something for it, we must become wise in choosing which coin to invest and which one has the highest chance of success in investment. We can make our own research so that the likely hood of failure can be eliminated. There are still good ICOs to choose from I think.
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April 08, 2018, 05:56:20 PM
 #26


I fairly doubt if such ICOs really require the amount they raised to come into operation. Most of the successful ICOs from 2017 still have 80-90% of fund raised on their one or more addresses. So before thinking of liquidity aspect, first important question is whether ICO has such large business that actually requires millions of dollars? The answer is no in most of the cases, that's why they are troubled by local authorities, tax authorities, etc. because they can't justify the use of funds and are forced to keep them as it is.
Else otherwise, market has instant liquidity of ETH. You can sell thousand a day without affecting market at all. 

None of the ICOs give you a breakdown of how exactly they plan to spend the investment. Most of them are ERC-20 tokens and their products are supposed to be running on the Ethereum blockchain. This is part of the promise that Ethereum can become the "global decentralized computer" for development of Dapps. The scalability issues show that this is quite the pipe dream.

The problem with ICO's is not just liquidity but also the development. The products/ softwares they are supposed to be developing on a blockchain (whether their own or ETH based), actually don't have enough users and features to warrant the kind of Ethereum requirement that would justify their usage.

As part of self-regulation, if these ICOs want to be taken seriously, maybe they should really start giving out audited figures regarding their projected gas requirements for development, testing and usage before they become self-reliant.

For as long as they have been here, the requirement has never been rationalized. They just assume that it'll all be money when it really isn't that.


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