The idea of ICOs and really the treatment of utility tolens in general baffled me when I first got into cryptocurrency. I very much expected the market to work like a currency speculation market but, the more and more I dove in, it felt like a securities exchange, which as you pointed out doesn't match the nature of the product. You can't really treat a utility like it provides the same benefits as a stock (ownership, dividends, voting rights, etc.). But, that's what people are doing. The price of the utility token bares no correlation to the success of the company other than the speculation that the utility token has worth, there is no intrinsic value nor can there really ever be. It's a very unique phenomenon really.
You are viewing a single comment's thread from: