The Internet is an information superhighway.
The blockchain is an asset highway.
The blockchain is the asset highway, and the Token is the car that runs on the highway (the carrier of the assets). Without a car, the highway has no meaning.
Because Token can represent a wide variety of assets, representing today or future values. Therefore, a part of the Token representing the future value can be pre-sold to the investor (or speculator) to achieve the purpose of financing (this is ICO). Although in many countries, the law prohibits Tokens from directly representing securities, securities are only a small variety of countless assets that Token can represent, so ICOs that pre-sell “non-securities tokens” The behavior is still in full swing around the world.
Because the blockchain is a new thing, ICO is a new financing method derived from this new thing, and there is still no effective supervision in all parts of the world. Just like in the Western Gold Rush era, in the ruleless Wild West, the weak meat is the only rule. So, the ICO we see today is like the out-of-control variant of the dinosaur in Jurassic Park. It seems to devour the entire old financial world, including his peers (peer), even those who hatch and preach him. .
Nakamoto is undoubtedly the "God" of the world. Everyone recognizes his existence, but no one has seen him. He magically opened this new world, but it disappeared magically. He seems to expect a white paper on Bitcoin to open a Pandora's Box, and the magical power released by the box will once again put humans on the greedy stove. The new world's first birth is destined to be one. In the field of humanity, there is no shortage of black smoke and anger.
Therefore, Satoshi Nakamoto chose 100% of the bitcoin to be produced by mining, and the mining rules are open and transparent, open and democratic. As the father of Bitcoin, he did not “pre-sell” bitcoin to other investors (speculators), nor did he “reserve” bitcoin as (return), or even set an “initial price” for Bitcoin. ". Nakamoto was only the first "miner" to start "mining" (providing billing servers and software for Bitcoin's blockchain network) when the world had not recognized and recognized Bitcoin. Later, the Bitcoin community grew slowly, and Bitcoin slowly formed a “price consensus” in the community. Nakamoto stopped the bitcoin mining and quietly withdrew from the historical stage. His bitcoin wallet address has been dug up to 1 million bitcoins, but it has not moved yet.
This is the spirit of the blockchain community:
Open, democratic, equal, transparent, selfless, and inaction.
Today, 99% of Token pre-sale (ICO) projects deviate from the blockchain community spirit and even run counter to the blockchain community spirit. They:
Closed, authoritarian, inequitable, black box operation, selfishness, they do nothing.
We are believers in blockchain technology and practitioners of early adopters. We explore the way forward in our actions. When we find that the new technology of blockchain is over-utilized by bad intentions, we always have to do something to try to purify the whole industry. We hope that new things will not be broken by lawless elements, and history will be stagnant or even pushed back. This is our responsibility and our historical mission.
Since the state has defined ICO to be an illegal fundraiser, no matter what the original intention is, the act of raising funds to the general public through the pre-sale of the Token may violate the criminal law. We must abide by the law and stop selling Token fundraising (ICO) to national citizens prohibited by ICO.
The blockchain cannot be without a token, but it can be without an ICO. There are many financing paths for legal compliance. Angel investors and private equity investors are mature in China and most countries in the world. This road is not blocked in the era of the blockchain. We don’t have to “go out to sea”, we don’t have to “get out of town” and leave our homeland we love.
The pre-sales pass (Token) for financing purposes is only a small part of the many capabilities of Token. It cannot be said that prohibiting ICO is equivalent to not issuing a Token. The issuance of a Token is not equal to a Token. Just like the bitcoin issuance rules that Nakamoto started to design, anyone who installs Bitcoin mining software can get (tick) Bitcoin for free.
At least in my opinion, for most teams that want to start a business in the blockchain field, your Token can be used to get the community you really want to win through the “workload proof” assessment. The user "digs in for free". The token should allow real community users to “dig” for free. The process of “mining” is the process of “proving that I am a qualified and valuable community user”. There is no capital cost in this process. There is no "speculative space."
A token is the carrier of community value consensus. The larger the community, the stronger the value consensus. Tokens should be dispersed to the greatest extent among community users and should not be held in large numbers by private speculators. Such a Token position structure can support an effectively growing community and a stable or steady increase in community prices (market prices).
The Token price is a consensus of peer-to-peer transactions (exchanges) between members of the community and should not be controlled by the project side, nor should it be controlled by the exchange. If the Token project party uses a 100% mining mechanism to issue a Token, there is no fundraising (money value management) because there is no fundraising (and no illegal fundraising). In this scenario, the issue price of the Token is “zero”, but the number of Tokens that each person can “dig” is limited, as long as any two members of the community privately trade the Token. It will form a real "market price" that reflects the "value consensus" of the community.
Why are most ICO projects broken now? Or if the token is unlocked, it will be broken immediately. In essence, there are two core reasons:
Token issue price (starting price) is too high
The number of users in the Token community is too small or even
The current pre-sale price of most Token pre-sale items is the so-called “market price”, which is not based on the spontaneous trading of the majority of the community. It is produced by a few brainstorming speculators competing for each other, similar to the price bubble generated by the "auction". When such a token enters the market, there is no foundation for the price, and there is no basis for price consensus. When those who participate in the private auction round and get the amount of the token, the token is unlocked. When "shipping", there are not enough community users willing to take over the bubble price, and even the speculative retail investors are not enough, so breaking is almost inevitable.