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$150M Tim Draper Backed ICO Bancor/ Question re Ethereum


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Hi all jus wanna understand something here why would a group or company doing an ICO collect its funds in a digital currency that wasn't meant to handle the type of volumes expected and thereby causing problems/delays on the network, wouldn't it make more sense to transact with a currency meant for this purpose and then convert to another currency when needed.

 

http://www.coindesk.com/150-million-tim-draper-backed-bancor-completes-largest-ever-ico/

Issues with the sale

As with past sales of this kind, the ICO was accompanied by reports that the ethereum network faced significant transaction loads, resulting in delays for buyers.

However, the project itself was adversely affected by long wait times on ethereum.

According to the Bancor website, an initial funding target was set at 250,000 ether, though this figure was not hard-coded into the smart contract deployed. As a result, a transaction sent on the ethereum blockchain in an effort to change the contract and limit the crowdsale in length did not work as desired.

Due to network disruption and delays holding up this transaction, the company said the crowdsale ended up continuing longer than initially desired. Overall, it lasted an two additional hours as a result of the delay.

Posts on social media further suggest that at least some users saw transaction issues during the sale. One thread on Reddit drew complaints about transactions being dropped as long as 35 minutes after they were sent to the ICO address.

Some participants who spoke to CoinDesk also said that they had experienced delays in transacting, including one who had issues moving their ethers off an exchange for the purposes of participating in the ICO.

One exchange operator went so far as to argue that the ICO had increased transaction congestion, colorfully remarking that larger ether buyers were disrupting the sale.

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7 minutes ago, gforce said:

Hi all jus wanna understand something here why would a group or company doing an ICO collect its funds in a digital currency that wasn't meant to handle the type of volumes expected and thereby causing problems/delays on the network

because there's no other way to collect this much cash this quick

so they know naive "investors" will flock to any and every new ICO regardless of use case or not 

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