Technology is a very hard to value idea. So when money gets into the mix, many people suddenly become technology experts. Throwing around ideas, such as block chain, cloud computing and cryptography as the next buzzword just because it is the next sexy thing. And for sexy things, people are more willing to pay more for it.
This post is with regards to cryptocurrencies and ICOS in general, however I will take some reference from the Dot Com boom and bust of the 2000s as well.
This sexy trend of putting money backing some shady ICOS is actually akin to investing in Pets.com in the 2000s. Some background of Pets.com from wikipedia
Pets.com was a short-lived online business that sold pet accessories and supplies directly to consumers over the World Wide Web. It launched in February 1999 and went from an IPO on a major stock exchange (the Nasdaq) to liquidation in 268 days
However with the bad news there are also good news from the bust. Companies which survived the dot com bust came back stronger than ever. Companies like Amazon, Microsoft, Apple (which by the way just became a trillion dollar company). There is just no way of predicting which technology will survive. However based on the Lindy effect, if it is still here, it might be here for a while more longer.
That being said, I asked myself this question, the largest cryptocurrency in terms of market cap Bitcoin was bootstrapped by 1 single person, required no such thing as a crowd fund, and survived to this day. Several attacks on it, and even a fork to Bitcoin Cash couldn’t kill it yet.
Question to myself : If the biggest market cap cryptocurrency could bootstrap it’s way through and still remain the biggest crypto in the market. Why are these shady ICOs asking for handouts.
Possible answer based on SITG and Antifragile : They probably don’t have SITG and just want a fast payout by milking the sexiness of such buzzwords being thrown around. Such ICOs will never have the antifragile edge as they have already been corrupted by the abundance of funding. Scarcity is the recipe to making strong man.
Possible answer based on Ikigai : When one does things for the sake of money, and not for his own Ikigai, it is highly likely it will barely amount to anything perfected. At most it will become a “Factory made cheap alternative”
Bootstrapped Coins which are still here today : BTC and LTC