Hi All,
I'm a bit confused on the necessity of ICOs. Here is what I am trying to understand:
if you would like to create a platform on which a token represents the value you place on an answer to a question, the question is asked, someone answers correctly, the token is transferred to them, and the person who answered the question would then like to "cash out" so to speak. In order to "cash out" on this token and convert it to bitcoin, is it necessary to have previously held an ICO in order for that token to hold any value in relation to Bitcoin?
I realize my question may be a bit scrambled so thank you in advance.
Yes things seems a bit bastardized now because it largely seems like the reason for ICOs and IEOs has been defeated after fraudulent behaviors of some projects and those with empty promises. Basically ICO/IEO were mirrored after IPOs but with a different model. The idea is that you have an idea of a product that you want to create which can benefit mankind on and off lockdown, so you come on, seek the funds then next is to deliver the product (which many projects fail to do unfortunately). The tokens you create serves as shares (different model too), but its in anticipation that your products when created will increase the net dollar value of the project when it starts meeting crucial need a in the market.
Yes, this is the idea case scenario but in real cases, moat ICOs and IEOs are just scams.