back to article Tezos crypto and $232m initial coin offering risks implosion – reports

If you threw money at the blockchain startup Tezos during its $232m initial coin offering fundraising round in July, here's something you can learn for future investments. ICOs are a popular fundraising method for cryptocurrency where you buy tokens to access new networks, and you can make bank* if their value skyrockets. But …

  1. Pen-y-gors

    Hope

    Hope is not an investment strategy,"

    But it is HMG strategy for the future of the UK economy.

  2. Mark 85 Silver badge

    Variant on a theme....

    I get the feeling that these types of "investments" and "startups" have been seen before. The Internet is littered with the bodies (metaphorically speaking) of those who had no clue. In the early days it was get some investors, start a website and sit back to wait for the pile of money to come it. No clue on having "membership fees" for some sites like certain photo sharing ones (long gone many of them), chat sites, etc. But somehow the money was supposed to magically appear. Some companies changed their business model and succeeded, most died off.

    And now the apple in everyone's eye is blockchain and cryptocurrency.... there's another bubble out there waiting to burst. I do wonder what's next as maybe get in early, make my fortune and head to some quiet island....

    1. Sammy Smalls

      Re: Variant on a theme....

      'maybe get in early, make my fortune....'

      If you can see a bandwagon, you've already missed it.

    2. Kernel

      Re: Variant on a theme....

      "In the early days it was get some investors, start a website find a mosquito infested swamp in South America or a couple of sacks of tulip bulbs and sit back to wait for the pile of money to come it."

      The theme pre-dates the intertubes by a few years.

      Actually, I wouldn't be at all surprised if Ogg didn't once acquire an excessive number of colourful pebbles by involving Zogg and his neighbours in a pyramid marketing scheme for 'direct-to-you' dinosaur steaks.

      1. TDog
        Boffin

        Re: Variant on a theme....

        This is outrageous - All we ever promised were steaks (TM) if available and simply think of the add on; by (of coarse[our working class stakes, for steak buyers]) buy three, keep one and find two other sellers who will each pay the price of your steak. And of course the premium goodies (Our steak has the blue sheen of slightly cooked, whereas other steaks cook the books, not the steaks).

        And of course, recursive steak sales generate unimaginable profits to be had, whatever level of stake you have in the steak sales business.

        1. Alistair
          Windows

          Re: Variant on a theme....

          @ TDog:

          Right. You get to write the prospectus for the next one...

  3. Anonymous Coward
    Anonymous Coward

    People back them so they can sell ... to a "greater fool".

    Some say Bitcoin will hit 25k, 100k or even 250k in a few years. The problem with that is its all assumptions. #1. Crypto-currencies are forking whether for fraud or new features. #2. Bitcoin at 5000 now, starts to look risky the higher the price goes for those who want to 'flip it' to another fool. So who wants to be the last man standing when the music stops? Risk was easier to live with when the price level was 100's, not 1000's!

    ~~~

    "I see a lot of reason being left at the front door.... Marketing triumphs reason every time. Swarup was sceptical of the value of digital currencies and believed people back them so they can sell them for a higher price to a "greater fool". Consider Dogecoin, a virtual cryptocurrency invented as a joke to make fun of Bitcoin and other projects. The market was worth $60m within the first few months. But because there are "finite people," eventually sellers will run out of "greater fools", Swarup said. Meanwhile, people will probably keep playing, but they should be careful. Hope is not an investment strategy,"

    1. TDog

      Re: People back them so they can sell ... to a "greater fool".

      No, but in and out is.

  4. Anonymous Coward
    Anonymous Coward

    Damn, a $60 million joke?

    I wish I had that kind of a sense of humor!

  5. Anonymous Coward
    Anonymous Coward

    Ways to tell that the company behind an ICO is not viable

    1. They're holding an ICO

  6. Alistair
    Coat

    Does no one else see

    A problem with that organization name?

    Cofound.it.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like