| Do you understand the concept of a stock share? Well, just remove the company, the product, and the regulation, and that's an ICO. The issuer of the coins/tokens do not have to buy anything back. The idea is that they will increase in value and function, and others will want to buy them from you. It goes like this: 1. "RichCoin" is created and the creators begin selling them at 5,000 Richcoins for 1 Bitcoin. Ads are pushed across social media platforms and web communities are seeded with information that encourages people to invest. 2. 50,000 people spend a total of 1000 Bitcoins buying the first 5,000,000 RichCoins. 3. After public launch, 5,000 people sell their RichCoins to late investors, netting ~20% profits. 4. The remaining 45,000 people "HODL", hoping that their $1 RichCoins will one day become $100 RichCoins so that they can move to a private island and never work again. 5. RichCoins fall to 10% or less of their ICO value as all official websites disappear. 6. The creators of RichCoin, who long ago converted their 1000 Bitcoins to $5,000,000 USD, move to a private island and never work again. |
Is it that easy to turn BTC to cash? I heard most exchanges have no way to withdraw real dollars.