There have been some serious questions regarding the Kibo ICO. This Ethereum-based decentralized lottery project has garnered a lot of attention in recent weeks. However, ever since the code for this project has been released, Ethereum community members seem to be changing their minds about the concept. But what is it that upsets so many people?
The Kibo ICO Is Cause For Controversy
The concept of Kibo sounds very appealing, as the developers want to achieve a decentralized lottery system anyone in the world can join. By using the Ethereum blockchain, everything should be conducted in a transparent method. However, their decision to hold an ICO is already causing a lot of backlash. That is mostly due to people being annoyed, rightfully, with ICO projects to begin with.
Unfortunately, that is not the only issue a fair few people have with the Kibo project. The minimum limit to participate in their ICO is 100 Ether – currently worth US$1,309 – which seems rather steep. Moreover, any comment regarding the ICO on their subreddit seems to get deleted–not the best way to promote a project designed to change the world, by any means.
All of this is taking place well before the Kibo ICO has even begun, which is scheduled for October 1st. While it is not uncommon for projects to attract some negative attention over their ICO strategy, there seems to be a lot more going on where Kibo is concerned. Some users are also very concerned about the project’s code, which does not bode well.
To make matters even worse, the code Kibo uses for its number generator is allegedly not random or tested right now. (Lotteries are random.) Keeping in mind how this is the most important cog in the machine, valuing the project at US$28 million seems vastly overstated at this stage. On top of that, most of the equity is being kept by the platform owners as well.
What is rather intriguing is how the Kibo ICO will offer a referral commission. So far that has never been possible, and it is a red flag for anyone looking to invest in this program. Every referral investment made will award the recruiter with a one-time 3 ETH payment– not all that much, considering the minimum investment is 100 Ether. It’s still a very odd business practice.
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