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RE: "Insider" ICOs are now becoming a trend... are VCs becoming "first class investors"?

in #crypto-news7 years ago

Really vexing issue. The developers need to be paid, upfront. Who fronts the money for that?

Seems to be several ways.

  1. pre-mine. Mine a coin for a period before opening up to others.
  2. stealth-mine. Open up to all, but leave a residual advantage to the people who built it, who can get ahead and build up the warchest.
  3. Founder's reserve. Do the token issue but carve out a mandated / coded part of the emission to a Founder's
  4. Founding company with VC money. Raise money on a proposal, pay for it, then use the corporation's inside advantage to build or mine or something.

They all have disadvantages.