Re: 3 kinds of ICOs — Protect yourself

How about Genesis Vision mate?

Genesis Visions team is from Russia, which does not have extradition agreements with much of the world. This means that if they screw you, there is little you can do. Do not expect the Russian government to extradite the team to your country.

They have a nice rating from icorating.com. However, Ill always have a question in the back of my mind: Did Russia pay off icorating to give a better rating to Genesis Vision? But, I could be wrong.

Their project is very specific to forex trading. The team claims to have experience in this in St. Petersburg. I didnt know that St. Petersburg was a major forex trading center. I wouldve thought of London, New York, Paris or Frankfurt. If you understand forex trading and you think that Genesis Vision can execute, then you should invest. For me, I see the execution to be very difficult. They would need a large budget for marketing and outbound corporate sales force to get forex traders to sign up to their program. If the traders are already performing well and making good money, why would they want prospects (potential clients) to be able to scrutinize them more through Genesis Vision?

If I was a forex trader, I would wonder why I would want to sign up to Genesis Vision, in order to be scrutinized by prospects and compared to other traders. Genesis Vision will tell me that I will get more clients. But I will agree only if Im a better than average trader. If I'm a below average trader, Genesis Vision will show this to all of my clients, which will prompt them to leave me to go to an above average trader.

This is what I think will likely happen, though I do not know for sure. Lets say there are 100 traders in the world. If you are among the top 50 traders, you will sign up to Genesis Vision. If you are among the bottom 50 traders, you will not. Now, there are 50 traders using Genesis Vision. After a while, the bottom 25 traders will drop out because they dont want prospects to see how they are underperforming. Now, there are 25 traders using Genesis Vision. After a while, the bottom 12 traders will drop out. If this trend continues, there will only be one trader using Genesis Vision.

I stopped reading their white paper after this. I do not know for sure that Genesis Vision lacks potential. I do not think they are scamming. I just think they have a flaw in their idea, I dont see the potential and I think the execution will be difficult. Others may think differently. Maybe the rest of the white paper has good stuff that I didnt read.

Also, I'm not sure why a new token is needed for this. Any competitor can create a similar system and charge clients in USD, EUR, YEN, BTC or ETH. The competitor's pitch can be: "Why bother going through the hassle of getting a new Genesis token that is used only between you and Genesis, when you can simply pay us with USD, EUR, YEN, BTC or ETH? What are you going to do with your Genesis tokens after you get data about your trader? Is it a one time use?"

Also, their white paper is very complicated to forex. If you read it all and fully understand their business, then you should invest. Otherwise, reconsider.

Of course they need to spend some money to pay for ICOrating listed on top.
You also know most of the ICO reviews are make money from this thing and ICOrating is aslo no exception.

It's obivous they spend money on advertising. Not only on ICO rating sites, they also pay youtubers and statistics of their website show they also use every possible way of advertising including news sites, display adds, e-mails, social media. I don't think that's but neccessary for successful ICO. There are legit projects out there that will fail to collect enough funds just because noone knows they exist. So I think investing in marketing is important.

Forex is very tough market. Estimates are only up to 5% traders are able to make profit long term. And not all of them are managers. It think most managers would lose their clients if they used Genesis Vision or not just because clients would leave them because of bad performance anyway. Making bad performance of managers transparent is actually good for their clients. It would make competition between managers tougher and only those who would be best of the best would remain giving clients top notch performance on markets, probably much better than an average client receives now. that might be one of possible scenarios too. But noone can know for sure what will happen with the project. Will they succeed to deliver? Will their model realy work? There's many things that could go wrong with every project. All startups even those funded by VC have more than 90% chance of failure and ICO's aren't any different. So investing in long term is very risky. But Genesis Vision at least seems legit and serious project that is trying hard to succeed and stand out of the crowd of below average ICO's. I think investor has still some chance investing in such a startup, but investing in some crappy unserious project he has no chance at all.

I think many people investing in ICO's aren't in for the long term profit anyway, but looking for quick profit after an ICO is listed on exchanges. They also managed to get some kind of permit so US citizens can participate. There's hardly any such ICO so I expect this will bring in a lot of investors from the US. And I think Genesis vision is marketing themselves well, they already have arrangement with their first exchange and they're not crappy project. This seem very good combination for some quick profit and they probably won't have trouble reaching hard cap.

About the tokens. They probably could have done the project without issuing their own tokens that's true. But then they couldn't make their ICO, they would have to get funded the harder, slower and more expensive way gathering VC funds. Many projects collect their funds this way. I know many people think that's bad. But I don't think that's always the case. It can be good business decision. Why would someone company choose to spend more resources than they have to achieve their goal. Well there are ICO's that incorporate tokens in their projects in a stupid way like CarTaxi for example, that makes their model worse than if there were no tokens at all. But I think Genesis Vision use of tokens makes at least some sense and doesn't hurt operation of the platform. And it also gives us opportunity to invest with possibility of quick profit (mind this is not investment advice or prediction, it's just my humble opinion). If they took the VC root we wouldn't even have the possibility to invest.