Funfair ICO Sold Out Quickly...Thoughts on Current Valuation

Funfair Was Hot Today

The Funfair ICO sold out today in a matter of hours. I had every intention of buying into this, but thought I would have at least a couple of days as the ICO was open for 2 weeks or until sold out. The ICO opened at 10 EST and was sold out around 2 in the afternoon. Unfortunately, the live contribution numbers didn't populate on the Funfair website until it was clear it was selling out quickly. By the time I saw the numbers, contributions had already totaled $11m and $15 million was the absolute cap for this round.

Coin exchanges are REALLY Frustrating Right Now

I scrambled to purchase some bitcoin in order to get in on the ICO, but failed miserably. My account with Coinbase wouldn't allow a purchase as the "Buy Bitcoin" button was greyed out. It has been like this for days. Not sure what is going on with that. Then I tried to make a purchase on BitStamp but fumbled with all of the verification process of setting up Google Authenticator. In a last ditch effort, I opened an account with Coinmama. I was set up and verified very quickly, but not until 2:54. The ICO had already sold out. Ugh. Very frustrating when you want to make a purchase and just can't do it!

Phase 1 Created a Fair Market Cap

Now that the ICO is done, it's time to evaluate Funfair's valuation. With the closing of the Phase 1 ICO, the market capitalization is essentially $15 million. This is a very reasonable number considering what it has to offer compared to competitors. Some competitors such as Edgeless and Vdice have market caps around $30 million. I think Funfair has a much better line up of games and could easily be valued at $50-$100 million soon after hitting exchanges.

Phase 2...Not so Much

Here is the problem. There will be a Phase 2 offering in which, 3 times the number coins will be created and sold! If all coins are sold, that suggests a $60 million market cap! That's a little pricey for the early stages if you ask me. The perk is that any unsold coins in the second phase will be distributed to holders from the first phase. That's a great potential benefit, but considering how well the ICO went today, I would expect Phase 2 to sell out as well. It will be very interesting to see how this performs when it is tradeable on an exchange.