Initial Coin Offering : Gift or a Curse
With the rise of ICO’s bulling down on Venture Capital, it gave rise to a new growth opportunities in the emerging nations using blockchain as a cost effective and systematic record keeping software governed by the people.
As great as the above sounds, there’s always a cost attached to anything you gain. As ICO’s were a new and emerging way of funding new startups by the people for the people, without a layer of verification there’s a bit of havoc in the market, leading a rise of scams and failed products with great marketing or ponzi strategies, but if the product is not user centered or user driven, it will not be able to keep the interest of the people in for long.
As it’s said ‘History Repeats Itself’
It surely does, if you match the conditions of how every astonishing technology emerges there’s a fight between the legality and illegality for the same.
Startups can raise the money either way but the reason why they opt in (or maybe why they should opt in) of crowd-funding is because of the word ‘crowd’ as the people who buy the ownership in the company can directly engage with the company as there own, creating an emotional attachment with the company that stays with them.
When we as a team were thinking of launching donut between the people, we had the same question, why do we need to do a crowdfunding round?, why do we need the public to invest in our company?
As we have seen it’s harder to maintain the trust between the people when the stocks are listed publicly and can be influenced with the slightest tremor in media. No doubt why ‘Tesla’ our favourite automotive giant is going private at a 74 Billion valuation only because it’s hard to keep an eye on the goal with fluctuations in stocks happening on the other end.
So, it wasn’t because of the money, as we were getting our operation cost covered by the ventures, yet we denied!
We decided to take the risk of giving out 51% stake of our company out to our users and provide them a sweet spot in the company as it grows with them.
Our aim has been to create decentralized systems, so giving out 51% control of the company to the users is supposedly the best decision we have taken, earning the trust of our users by keeping our software open source making it accessible to the public anywhere around, the stakes are to be given out to the people so they decide what to do with the company.
Isn't this the true meaning of decentralization !
If you want to own the peace of the company or work along side us, reach us out here
