# kaal:claim:3067615-034

**Claim.** 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.

**Type.** failure  **Support.** argued

**Holds when.**

- ICOs without an underlying product

**Source quote.**

> 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, page 21

**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

**Verify.** sha256 of source PDF `164ce15b9eb1e8847ebcb073f5b23a96b4974ad0308d77469a9455d4a1ebeb38` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Dell%27Erba%20-%202017%20-%20Initial%20Coin%20Offerings%20Emerging%20Practices%2C%20Risk%20Factors%2C%20and%20Red%20Flags.pdf

**Failure mode.** Uncapped raise without underlying product  (family: investor-protection-gap)

**Topics.** economics, risk-and-incentives

**Keywords.** uncapped-raise, red-flags, valuation-uncertainty, promoter-incentives

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3117224-006

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