Address

Blockchain Traded Funds Inc.

New York, New York County 10003

USA

Contact

+1-347-927-2105

Follow

©2017 BY BTF BLOCKCHAIN TRADED FUNDS. 

Challenges
The challenge that BTF sees in the ICO & Token Marketplace is that tokens are not Stocks. Stock ownership is a very mature concept since the days of the Button Wood tree and the Mississippi Company. Blockchain Traded Funds seeks out companies who believe in capital appreciation of their tokens and a P/E model that is similar to stock ownership. Traditional IPO's are controlled and distributed by Investment Banks who then let their syndicates distribute those shares to certain accredited investors. 
So the question remains; who prices these ICO's if Investment Banks are not present? As seen with Linked-In's IPO in 2011, their IPO was mispriced at 45$ a share and only raised $352 million when it could have assuredly raised more. Even Investment Banks make mistakes. And although Transfer Agents, the DTCC and Investments Banks are not needed in the Ethereum Smart Contract Ecosystem; these old institutions represent TRUST not yet seen in ICO space. 

Challenges
1. Who should price a company's ICO? And what are they truly worth? 
2. What independent auditors should monitor the accuracy of an companies books?

3. How will the company who receives funding via cryptocurrency use this capital honestly to build itself into a profitable venture; like buying capital equipment, property and hiring the right talent?

4. How will a profitable company return excess profit back to a token investor via dividends etc. 
5. How will these profits and earnings be taxed by world goverments?
Oliver Wendell Holmes said "Taxes are what we pay for a civilized society"

For if ICO's and tokens are real and not a bubble, then tokens will benefit all investors and not just the rich as seen in traditional stock ownership. 

Bubbles and stock mania can be investigated in "Extraordinary Popular Delusions and the Madness of Crowds" By Charles MacKay as early as 1841. 
Blockchain Traded Funds believes these lessons should never be forgotten!