The thing about crypto ipo's, especially in nxt ae, is that they are not legally binding in any way. Therefore it seems impossible for me to invest any sums over .5 btc to an ipo. Its giving up money in return of only promises. And as we all know nobody ever gets screwed when theres money involved.
Hopefully the nem commercial entity will make it more reliable to invest in ipo's ;)
I suppose risk and reward are inextricably bound. The current IPO business is very risky but if you manage to discern promising projects from scams, it can be disproportionately rewarding. As we'll make things more reliable and risk will be significantly diminished, I think rewards will accordingly decrease with it.
I dont think the rewards will be diminished. The business that holds the ipo will either succeed or dont. The risks will be mitigated since the threat of scams will be lessened.
And also hopefully some of the most ridiculously priced ipos will dissapear that we see today.
I agree with that. Still the rewards will be diminished because as risks will be mitigated and risk perception will decrease, more and more people will start to join IPO's and as an effect the rewards will be divided to a significantly larger number.
To give just one example, I think a lot of people would invest in a project like Nxt if it came along now, but very few had the guts to do so at the time of its IPO because of obviously high risk perception.
One thing to note. NEM raised only less the $100K. The amount of work that is being shown is definitely more than $500K by now and we have something to show. The chances of it being a called a scam gets more remote by the day. Hence, the chances of higher rewards increases.
In the end, as they say, action speaks louder than words. We shall soon see things before our very eyes how this will pan out and how this will be successful.
By then raising money should not be a problem if some of us decide to take an entity to lead the next stage of expansion in the ecosystem after V1.
Things should get increasingly interesting with NEM during the following period.