Categories: CryptoNews

MIGS Is Another Honest Ponzi-Style Ethereum ICO

Over the past few months, we have seen quite a few interesting ICO projects which are unlike what anyone would expect. These so-called transparent Ponzi ICOs have made quite an impact on the market, although it seems quite a few people are still investing in them as of right now. MIGS is another one of those “honest” ICOs which tries to get a point across.

The MIGS ICO in a Nutshell

The MIGS ICO is essentially a project designed to show how easy it is to create a Ponzi-style ICO on top of Ethereum. We have seen quite a few such projects in the past few months, with some of them even successfully raising thousands of dollars. Whether or not MIGS will fall into the same category when everything is said and done remains to be seen.

What this ICO brings to the table is a clear example of how most people are getting tired of this business model as we know it. Most companies create a half-decent website, put together a whitepaper – potentially written by someone on Fiverr – and hope to raise millions of dollars. Not every business requires a blockchain infrastructure, yet a lot of people remain convinced that is the best course of action regardless.

Additionally, the MIGS team states that the smart contract for this ICO is definitely not audited. This highlights another big concern in the world of cryptocurrency ICOs these days. A lot of these projects have unaudited smart contracts holding customer funds. If an issue occurs – as it has in the past for several companies – it will only lead to financial problems in one way or another. MIGS’ creator acknowledges he learned Solidity in a weekend and put together a smart contract mainly based on copied details from another project.

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Additionally, MIGS guarantees the token value of all ICO tokens purchased. Since the value of this token is already zero, it cannot decline any further in the future. In fact, it can only increase, assuming people are foolish enough to attribute any value to such a token in the first place. Rest assured it won’t take long until we see a MIGS-ETH trading pair on the EtherDelta platform.

So far, the MIGS ICO has raised a total of 0 Ether, although it had only been ongoing for a few hours at the time of writing. It is possible this may become the first honest Ethereum-based ICO to raise absolutely zero money, although that seems rather unlikely at this stage.

Similar to some of the other Ponzi-style ICOs we have seen in the past, more people buying tokens will be great news for early investors. That’s because early investors will receive tokens based on the total number sold in the long run. Such an approach will certainly attract a lot of attention in the long run, although it remains to be seen whether or not MIGS will raise any money. Since the token has no value whatsoever, or any use cases to speak of, people should – by default – not invest in it.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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