How did you get your seed funding

Isn't an Initial Coin Offering (ICO) a surefire way to make a ton of money?

My big criticism of the ICO name and its mania is that it bears no resemblance to an IPO. At best, an ICO is an investment in a completely unproven technology / idea / theoretical use.

A development team works together to write a fancy white paper and then create a nifty website that displays the idea they're working on. In general, this idea has no practical immediate use. In general, this idea is still nothing more than an idea. At best, the idea is realized by essentially reusing another coin’s open source code base with minor changes. The developers then get an exchange or two to start trading the tokens. An exchange even goes so far as to exchange IOUs for tokens before the ICO takes place. It's shear madness driven by this mania of having the next bitcoin for $ 0.00001 each.

By the time a real organization goes through the real, regulated IPO process, it has already received its seed funding and then the equity funding rounds. THEN the company has demonstrated that it has a valuable product or service and that a competent management team is allowed to own stocks to sell to the public. US law prohibits seed-stage companies from soliciting investments from non-accredited investors (this does not mean that non-accredited investors are prohibited from investing). An accredited investor is someone with an income in excess of $ 200,000 per year or with a net worth in excess of $ 1,000,000.

Seed-stage organizations have an exceptionally high failure rate regardless of the planned business.

These ICOs are little more than developers who scare off naive "investors" by selling them the dream of being on the ground floor of the next bitcoin. It is really horrific. They should stay away from them, everyone should stay away from them, and the people who run them should be punished.