Looks interesting, except for the fact of no cap on the investments. Refund that 20 BTC investment (79.9465 % of all IPO) and introduce a sane cap of max. 1 BTC.
This is obviously an insider using funds to obtain more of the IPO. I wouldn't be surprised if they used funds that they were going to use for development for the IPO.
Obviously the developers own funds. Unfortunately there is no way to make sure a developer doesnt pretend to use his own funds to buy stake in his own project.
He is basically doubling his money in this scenario by using it twice. Once the coin is listed on an exchange he can sell his stake and effectively double his money.
Now that you've pointed out his actions he could refund the money and make deposits of 1 btc twenty times.
Either way, we can't stop developers from acting in unethical ways.
I guess 1-2% premine just isnt enough?
Not when you can have 80% of the IPO as well.