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Controversy Surrounding BAT ICO

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Controversy Surrounding BAT ICO

Introduction

This article was posted on Thursday, 08:15, UTC.

Scams have long been common in the cryptocurrency space, but it seems we may be getting better at spotting them from the beginning. With the recent BAT ICO on the Ethereum platform, we saw some serious weirdness that resulted in a few people owning 40% of the distributed coins. As Vitalik Buterin points out below, one very weird thing was an extremely high mining fee paid out to get to the front of the line in the ICO funding:

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BAT stands for basic attention token. BAT will be used in the Brave platform, which at least at one point involved a browser that intends to pay people for allowing some advertising into their browsing experience. Brave can be integrated into other means of advertising, as well, of course. This is, perhaps obviously, why people are suspicious of the whales who bought in huge and heavy, as well as paying absurd transaction fees.

It seems there are two obvious answers to the questions at hand. One is that a reseller of the tokens, who believes they will be huge, wants to get his hands on a lot so he can sell them to advertising agencies. Another is that a couple advertising agencies themselves snapped up as many as they could, and weren’t really aware of how much money they were spending when using the Ethereum platform for the first time. Or, sadly another option is that the creators of BAT and Brave themselves went in for huge buys on the token sale, perhaps to ensure success of something that turned out to be a success anyway or perhaps to have more control over the economy going forward. If the intention is to withhold that large percentage of the token from the public, then that would indeed have the effect of raising the overall value, which would be a good long-term move for anyone invested in the project. Nevertheless, people apparently wanted to buy more coins, and having only a 24 second window to make a purchase seems overtly absurd.

It would seem obvious that a second, longer token run should be run, so people can get in on the project, since interest seems to have outweighed supply:

One thing is for sure: advertising isn’t going anywhere. The upcoming advent of virtual reality being commonplace will only increase the ability to advertise to people based on their real preferences and desires. The more time people spend on devices, in virtual space, the better the advertisers will become at extracting funds from their wallets, virtual and physical.

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P. H. Madore

P. H. Madore

http://phm.link

P. H. Madore lives in Arkansas with his wife and children. He has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and is currently nearing the completion of a cryptocurrency exchange in concert with the firm he primarily works for, Vermont Secure Computing Consultancy.

Comments
  • user

    AUTHOR Gabriel

    Posted on 9:40 am June 1, 2017.

    The community really needs to scrutinize these ICOs carefully, otherwise some sketchy things could happen.

  • user

    AUTHOR alecuk

    Posted on 10:14 am June 1, 2017.

    Everyone wanted BAT and no one (other than a small group) got it! Haha. No one was expecting that. The next big ICO´s will involve people hiking there gas price and submitting on the SECOND of opening. On your marks, get set, GO!!!! 😉

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