Let’s boycott uncapped ICOs

Recently I came back from a 4-month trip to Silicon Valley. Most of the time I was polishing my pitch and perfecting my deck. After a while, you get to know the game really well and know what they will ask you after you shoot out your pitch.

The question that popped up every time was: “How will you spend the money you’re raising?”

You have to have an answer to that, or else you’re out immediately. It doesn’t have to be down to the last cent. It’s enough to present them with a pie chart, breaking down the numbers to a few basic segments: technical development, project management, marketing, administration and misc.

Now try to do this pie chart for an unknown budget. It’s stupid. Just as much as uncapped ICOs are.

Not knowing how much money you need to meet your goals can mean only two things: either you’re Gordon Gekko-level greedy or you don’t know what you’re doing. In ICO land I would bet on the first scenario.

We should boycott uncapped ICOs or at least flood the founders with standard VC questions. Uncapped ICOs are the reason the whole world is talking about another bubble. Uncapped ICOs are the reason for deep corrections, panic sales and flash crashes on exchanges. Last but not least — issuing an unlimited amount of a certain commodity causes inflation. As someone who used to live in Yugoslavia I know that damn well. Back in the eighties we were all millionaires and we all know how that ended.

The Ethereum platform allows us to do something we couldn’t do before — be there at the very beginning and cash out like a champion when the time comes. Something that was reserved for Goldman Sachs, JP Morgan and other banksters when Google or Facebook did their IPO. Now it’s our collective responsibility to fight back to the same kind of greed that pumped and blew up the dot-com bubble.

I see the blockchain technology as a way of showing the middle finger to Wall Street, corrupt financial institutions and the rest of the today’s central financial system, that drove us into recession a couple of years ago and asked us to bail them out just to give them another chance to take down the world economy again and again. I don’t see it as something that takes the money from the crowd and gives them into the hands of a small elite, but the way things have been evolving lately, this is exactly where we’re going.

If you like it than you should have put a cap on it.