What will drive demand for ICN if the ICO hits 10,000+ BTC? Think about it. The more funding raised during the ICO, the less ICN each investor receives. At that point the only thing giving the ICN "value" will be the reluctance of investors to sell their ICN at a loss. But why will people who didn't participate in the ICO want ICN once it hits exchanges? The dividends. But if ICN hits exchanges valued at, say, $1 or $2 USD a piece (a hypothetical breakeven price for investors) and it requires 5000 ICN to receive $10 worth of eth per week in dividends under the condition ICONOMI is able to generate ~$200k per week in profit... will people really be itching to buy it rather than investing in anything else out there?
Please tell me if I'm looking at this all wrong. It's easy for the ICONOMI team to call for ever greater funding because they have a fixed share percentage of the 100 million ICN. Their share doesn't decrease no matter how much is invested during the ICO. This means in 6 months, when they gain access to their shares, they'd be able to sell beneath ICO investors breakeven price (i.e. at a more reasonable price for people wanting ICN for the dividends) and still make a killing.
I'm not suggesting they would do that, but these are some thoughts bouncing around in my head and I think they're worth talking about.
Great comment. We've spent time discussing same questions you have.
This is from our last blog post.
The decision for investment of capital raised above 10,000 BTC in the ICONOMI.PERFORMANCE fund needs additional clarification. ICONOMIs ICO aim is to increase the value of ICO participants invested assets, which implies
effective distribution of the raised capital. We believe it is in the best interests of current stakeholders to invest the
potentially excessive part of the raised assets into the ICONOMI funds. By making this step, the value of ICONOMI is inherently increased, as the initial capital required for fund commitments will already be available, which makes funds operative and importantly, very attractive to future investors. Additional inflow of fresh assets into the ICONOMI funds will be much easier to secure. Please note that the inflow of capital into the funds is one of the most important factors in the fund management business model!