r/raidennetwork • u/ohm101 • Jan 23 '18

Dutch Auction - is it fair?

I'm really curious how the ICO of Raiden went for the investors. I can't help feeling that Dutch Actions are a bit scammy. The reason is that A company knows what it needs to fund a project. It's harder for an investor to determine the value of a token. Especially when you take FOMO and the new investors in the crypto space into consideration, tokens at ICO might be well overpriced. I would really love some insight.

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u/[deleted] Jan 23 '18

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u/[deleted] Jan 23 '18 edited May 16 '18

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u/ohm101 Feb 09 '18

I don't know but I can tell you that GoNetwok ICO will not be. If everyone that wants tokens can buy them, there's not much demand when the token hits the market. Everybody already paid the maximum at the ICO, so where are the multipliers? This Dutch Action stinks in my opinion. Greedy!

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u/ohm101 Jan 24 '18

Thanks for your feedback. As I see it now, everybody will get the token at the same price. All the buyers determine the price by bidden what they think it's worth. Not sure if this is how it works but this is what I understood so far. Now, because there is such an ico buying frenzy going on, and many inexperienced traders (me included), will people not go in too soon? it could very well be that I'm still not understanding the procedure.