An ICO that proposes an uncapped raise without an underlying product is a very serious red flag, because uncapped raises are perceived by the crypto community as greedy and raise investor uncertainty about the valuation of the platform or product being bought.
Source quote, verbatim
First, ICOs that propose uncapped raises without an underlying product constitute a very serious red flag for any investor.
From
Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017), V. Red Flags, p. 21 https://ssrn.com/abstract=3067615 · source PDF
Cite as
Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615
Holds when
ICOs without an underlying product
Classification
failuresupport: arguedfailure: Uncapped raise without underlying productfamily: investor-protection-gapeconomicsrisk-and-incentives
Related claims
extended_bykaal:claim:3117224-006 Capped ICO raises, adopted to address investor uncertainty about platform valuation in uncapped raises, backfi...
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