A few months ago, an individual announced he was creating the Useless Ethereum Token. As the name suggests, this new asset serves no real purpose, will not necessarily appreciate in value, and shouldn’t even be listed across exchanges. Despite the lack of appeal to investors, the Useless Ethereum Token’s creator raised over US$300,000 through his initial coin offering. It is evident a lot of people didn’t pay attention to what this project was about.
The Useless Ethereum Token Becomes a Success
Although no one really expected anything to come of the Useless Ethereum Token, it did confirm that the entire initial coin offering industry is in a very bad place. Anything that is labeled an ICO, blockchain, or cryptocurrency will attract a lot of attention at some point. In some cases, projects might even raise several thousands of dollars even though they blatantly state their currencies will never achieve any goals. Even so, investors are still too blind to read the obvious and they keep throwing money at pretty much everything.
Such was the case for the Useless Ethereum Token. Although its website was designed in a clever manner, the creator never shied away from mentioning how this token would never amount to anything. In fact, he made it clear no one should buy into this ICO or expect to use the token in the future. No one should be particularly surprised to learn there are some people who actually bought into this ICO, allowing the “inventor” of the Useless Ethereum Token to raise over US$300,000.
While everyone knew this crowdsale would attract one or two wayward investors, it is evident people simply look for buzzwords rather than actually doing their proper research these days. The value of UET is absolutely guaranteed, as it will not decline after the ICO. In fact, the token has no value whatsoever, and thus it can only go up in price as time progresses. This can only happen when people are willing to attribute value to a token which, as the name suggests, serves no real purpose whatsoever.
It is obvious that people should never invest in offerings such as this one, and alternative option could be bitcoinup.io. Why some people eventually decided to ignore all of these warnings is hardly understandable. The Etherscan address shows over 23,630 transactions, the last of which took place just three days ago. That’s pretty problematic, for obvious reasons.
When everything was said and done, the Useless Ethereum Token was a more than successful ICO, as around US$300,000 was raised. It is a bit unclear how the developer will use this money moving forward, although he is certainly free to do so as he likes. As of right now, each token is valued at US$0.0414, with 541 different addresses holding these tokens as we speak. It’s a very worrisome development, although you never know what the future may hold for UET.
Whether or not we will see more ICOs like this one remains to be determined. The Useless Ethereum Token has certainly set an interesting precedent for the initial coin offering industry as a whole. Anyone can create a new token out of thin air and hopefully raise money by hyping an ICO. Even if someone can raise just US$10,000 with a similar ICO, it is evident the industry will need a reality check sooner rather than later.