Post-ICO IOUs: Be careful
[UPDATE] 14:14 EST: The IOU is now worth approximately 0.008 bitcoins. It crashed and burned. Condolences to everyone who bought at 0.03... It really sucks to see this happening because now those IOU buyers just lost a bunch of money but the exchange is still keeping the price inflated to make profit... :\
Original Article
I'm sorry if you missed out on Bancor and was totally hyped about it this morning. I'm pretty bummed, too.
But please BE CAREFUL about trying to buy in at this point. The ICO is already over and the coin is NOT publicly available for sale. There is NO WAY someone can transfer you Bancor right now, so do not fall for it.
That being said, I noticed that some exchanges are selling IOUs for the coin at very inflated prices.
3 main points to observe:
The price of the Bancor IOU is 0.03 Bitcoins.
At the time of writing, 1 Bancor IOU is selling on one of the exchanges for 0.03 Bitcoins (BTC).
In case you're wondering why I won't link any sources on this one, I won't name the exchange because the purpose of this article isn't to shame anyone/anything, it's just to help readers make more informed buying decisions.The 0.03 BTC translates into $78.9057; i.e., 1 Bancor IOU is $78.9057.
Also at the time of writing, 1 BTC = $2,630.19; therefore, 0.03 of it is $78.9057.
The value of 1 BNT from the ICO calculates to $1.9288
According to Ethplorer, a total of 79,323,978 BNT had been issued from the ICO. The ICO raised roughly $153M. This would mean the value of each BNT would be approximately $1.9288.
So if you are buying 1 IOU at $78.9057 when the current price is $1.9288, the price would need to increase by 40.9x by the time of initial public trading in order for you to break even (well, even more because of transaction fees). Please note, I'm not in any position to make any predictions about Bancor, so I cannot say that it will or won't increase by that amount. But 40.9x is the target increase value that Bancor needs to grow in order for you to almost break even.