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RE: Why Bancor Will Work?

in #bancor7 years ago

So the person issuing the token on selling it doesn't get any of the value? It all goes into the smart contract, reserved for buying it back?

Why would a company use bancor for their ICO if all their required capital is locked up in a smart contract permitting their investors to cash out?

What am I missing?

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They do get value. If your ICO has a 10% BNT reserve, the other 90% of value captured is actually credit created. So basically you add 1 BNT to the reserve but the market cap of the project is 10 BNT.

Thanks Paul. A few weeks too late d:
But others will no doubt benefit from this answer :)