Civic Token Sale

The Civic token sale was this morning, 6am California time. ICOs have been getting a lot of attention lately and this was the highest profile one I’ve come across to date, based on the people who were talking about it. 

I ended up taking part, mostly because I believe in the investment, and only partly out of curiousity. There’s no way I imagined myself doing this just a year ago. Even as recently as 6 months ago, shortly before I exchanged USD for my first Bitcoin, the idea of investing in a startup via a virtual token would have sounded absurd.  

Yet I found myself sitting at my desk this morning, scanning a QR code at 6:00am to get my spot in line. 

Prior to this, I mostly heard about ICOs after the fact, in headlines with blurbs about raising [LINK – SPECIFICS] millions of dollars in a matter of minutes. The civic offering first came across my radar via Fred Wilson’s AVC blog [LINK]. I don’t know him, but I’ve read his blog nearly every day for the past few years. Knowing this has his attention, i made a note to look into this further. 

Over then next few weeks, I came across mentions of it by various other blogs I follow, crypto news sites, and on twitter. This past weekend I got around to actually looking into more details, and whether I’d be comfortable, under normal circumstances, investing in the company. 

I downloaded their app, read everything on their site, did google searches and found some great analysis [links]. Ultimately I concluded that, while a $100M valuation is lofty, it’s justifiable given the values given to less promising startups. And in the end, I believe they have a decent shot at being valued much higher in the future. 

Of course, being a startup, there’s a high risk of failure. I’m willing to take that chance, but also believe the token model can take away some of that risk. While I don’t intend to sell anytime soon, the possibility of liquidity is appealing. It can be frustrating having money tied up, particularly if there are signifanct changes that would impact investment decisions. That’s only a problem in private markets. After all, if Amazon suddenly replaced Jeff Bezos with John Mackey, I’d get out of Amazon investments immediately.  

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