Quote from: Mendeleev on April 07, 2017, 03:18:06 AM

Quote from: MoveCrypto on April 07, 2017, 02:41:34 AM

You may have to read between the lines on some of this stuff due to regulations. If the team makes a blog post that clearly spells it out: "ICN tokens have value because all of the profit we generate will always be used to buy/burn ICN" then they would be admitting a violation of the Howey test:

Quote

2) There is an expectation of profits from the investment

And no, it's not a share of a company. There's no legal framework to allow an anonymous token holder to have the same rights as a stock shareholder. Again, can figure this out by reading between the lines.

Sending dividends to the tokens with the earned profits means NOTHING if the tokens have no actual worth. It's like an empty gesture. They're using a portion of the profits earned from investors' money, to send dividends to the tokens which THEY issued to investors. The rest of the profits remain in the fund.

As they have stated they will send dividends to ICN holders - and state clearly that they don't want to artificially increase the market value (which is fine) - then the dividends won't affect the market at that point. Any dividends are irrelevant, as they have always been, when other whales are in the game.

As the token has no intrinsic value, and Iconomi aren't artificially increasing its value, then the only factor worth considering is dividends... which, as I said, is not enough to increase value alone.

You are still left with a token of NO VALUE which is slowly receiving dividends.

It doesn't matter how much ETH they send back with their profits, the remaining ICN is worthless without a use-case, and the market will ultimately reflect that, because Iconomi aren't in control of the market.

The only other driving factor here is that enough people erroneously believe that this dividend model actually works, and somehow this collective misconception will drive the price up.

In reality, you could send dividends for FIVE years, and ICN will still have ZERO actual value, unless somebody from the team can explain otherwise (e.g. rights/perks/whatever)

So don't bother with this "read between the lines" nonsense. Until somebody from the team can explain away the above, people will keep criticising this move, for those reasons I've explained.

Is this making any sense yet? Because it was glaringly obvious to me as soon as I read the announcement, and it seems to be glaringly obvious to those "trolls" on reddit, too.

Anyone can make a token on Ethereum. If I create 100 MEND tokens right now, in return for tokens of established value, then I invest those value tokens elsewhere, turn a profit, and start to send dividends to MEND holders with 20% of my profits, would you accept that as a legitimate business model?! I doubt it.

It's like I borrow a dollar to place a 5 to 1 bet, I win, then give the dollar back. But I keep placing bets with the profit and giving you 20% of the winnings.

This whole thing is a joke until somebody from Iconomi can explain why ICN is actually worth anything.

Hint: You are not someone from Iconomi, so please encourage Tim or Jani to address those concerns. Preferably Tim, as Jani appears to be a halfwit.

I replaced all the times you mentioned buyback in your argument with dividends.

The exact same argument could have been applied anytime to the dividend model, so it makes zero sense that this is suddenly a huge concern unless you are trolling.

edit: I also fixed the fallacy in the "borrow a dollar" example you made at the end