Why ICOs are a good thing even if investors lose money


#1

TL:DR - bubbles enable innovation - always have done, always will do. Without irrational exuberance, investors would run a mile from startups. As the VC business grew big and professional that is what happened. Entrepreneurs kept on being told the bar had been raised:

“Come back when you have an MVP.

Ok, here it is.

Come back when you have PMF.

Ok, here is evidence from our early adopters

Come back when you have Revenue.

Ok, here are our metrics showing that.

Come back when you have Profits

Ok, here are our metrics showing that.

Come back when your Profits are growing at faster rate.

Ok, here are our metrics showing that.

Ok, we are ready to invest.

No thanks. we don’t need you now.”

The sort of ventures getting funded through ICOs would never have got through that gauntlet. So we would not have Ethereum for example. Sure 90% will fail, but so what because the 10% that make it will change the world and make you rich. It is the old fashioned VC mantra but in the last decade so much money went into VC that it was no longer VC, it had become Wall Street West.