ICO Token Appreciation: The Economic Reason Why ICOS Works
A d v anta g ously s wap y ou r risk and crea te val u e.
ICO TOKEN APPRECIATION THE ECONOMIC REASON WHY ICOS WORK W r i tten b y: Or en Ba hari
Imagine Tesla wants to invent the Tesla Roadsters and they will only produce 10 in the world. The car will be used as a ‘vehicle’ to facilitate joy rides across the world. Tesla sells the prospect of a Roadster in the future at $100 M, discounted by 50% from $200M. The money from the sale will be used to finance the production of the cars, and the signing of the deal signals to the market that the investor trusts the process. Seemingly, both Tesla and the investor are mad. Tesla, a centralised company, could raise the capital through a loan and make a $100M dollar profit minus interest later. The investor could join an existing market and securitise his investment; not losing any demand based return for his risk appetite. Conditional on rational expectations of the legitimacy of the new company and investors full understanding of the benefits of the project, under all the rules of regular finance this deal should not happen. The variance of the returns possibility for a no-promise, crowdfunded project makes it traditionally unfeasible.
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