The Risk of LISK: March 20 2016

219 Views

lisk

 

This is an open letter to the LISK project. You just closed out one of the most successful ICO’s in crypto history. Though we as a greater community can not force you to do anything we HIGHLY encourage you to learn from the Ethereum Projects mistakes.

 

They raised about 35 000 Bitcoins and got in the habit of selling off about 5000 Bitcoins at a time. When they sold their holdings it had a brutal market effect that dragged down the price of BTC each time they sold. Not only is this irresponsible from a crypto community point of view but it also hurts early investors.

 

I say this because no matter how revolutionary a project it is the real value that people trade, which is often the ALT/BTC pair and not the ALT/USD pair. Therefore if you crowdfund, then sell off your BTC and drag the price of BTC down, early investors are now stuck with a depreciating asset and it is depreciating 100% due to the actions of the project itself.

 

I highly doubt the chain reaction is considered because so few projects ever raise so much capital in the first place. But with that said you, LISK, have raised a staggering amount of capital and we the greater community charge you with the task of learning from Ethereum’s mistake. Sell off 100-200 BTC a day on 4 or 5 different exchanges if need be. But selling off 1000’s at a time just hurts everyone.

 

Not to mention the bleeding obvious situation that Bitcoin is set for a halving in a few months. This means that a higher daily base price is needed for mining to be profitable and in turn provide the highest levels of network security. In a nut shell, the math dictates BTC on an upwards curve over time and thus one more reason not to just sell off all your BTC now.

 

Good job raising a huge amount of funds for your project…..but hey, “with great power comes great responsibility”, don’t screw it up!

 

One comment

  1. Well said

Leave a comment

4 × 2 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Altcoin Exchange

Trade Crypto, Forex, Commodities and more

Charting Tool