I was just talking with a VC today who is in the process of buying a fiat exchange and is interested in funding us to integrate. Funding developers is not going to be a problem.
In reality these low prices are HELPING us attract VC money because they can buy in and capture a stake.
Truth.
The low prices make it possible for the people who predict the future by creating it to accumulate enough to make it worthwhile.
Indeed.
Usually in startups/VC, the equity in the company is held by a small number of investors who are long term believers, knowledgeable about the company, and who are strong hands who would not panic and sell their stake if the valuation went down. In fact, the shares at that point are not even tradable.
It is a unique thing about cryptocurrencies that they have allowed average people to act like venture capitalists, buying into crypto IPOs. This is very cool. And yet, sadly in the current state of crypto, there are just a ton of people running around out there buying and selling cryptocoins that have NO understanding whatsoever of the technology. And so many of them are weak hands, momentum buyers, who just buy pumps and sell dumps and have no idea what coins are good or bad, other than to look at what coin is going up or down.
........
I agree. It is a completely new phenomenon that through crypto everybody has the opportunity to act as vc`s.
But not everybody is aware of the cycles that every startup is going through. Beside the ones frustrated by the bumpy road caused by erratic management decisions there are frustrated speculators, using the speculation instruments like longs and shorts. Some losing money by gaming the market in the wrong direction.
I am an investor only, buying and holding. As long development is going on and the crew is committed to the project, the opportunities of this project are still outweighing the risks for me.