According to the cryptocurrency researcher Dovey Wan, the decentralized forecast marketplace Augur sold about 1 million Ethereum to $ 0.7 immediately after his fundraising round
If Augur had sold his Ethereum reserve upward, in the region from $ 1,000 to $ 1,500, the $ 700,000 obtained two years before they could have been worth $ 1 billion and $ 1.5 billion. Even after a correction of 80%, 1 million ether is worth about 280 million dollars in September 2018.
According to Wan:
This is very complicated
1. Augur raised more than 1 million ETHs when the price was $ 0.7, converted almost immediately, which was worth at least $ 200 million now, completely missed the rise
2. If you build on Ethereum by default, you believe in its value. The sale seems to be in conflict with that "https://t.co/kbKYwJbnhf
– Dovey Wan (@DoveyWan) 3 September 2018
Augur Founder responds, experts agree with Krug
Joey Krug, the creator of Augur, responded to Wan's criticism with the simple argument that Augur was and still is a startup, not a hedge fund.
In 2015, when Augur started an ICO, the market was highly unstable and extremely volatile The price of ether, the native cryptocurrency of Ethereum rose from $ 10 to $ 1,500 for the whole of 2017, but in the years prior to that, the price trend of Ether was really unpredictable.
As a start-up and open-source project, Augur's immediate action was and should always be to convert money raised into an ICO to finance development. case of Gnosis, another forecast market based on Ethere um projects could certainly leave a part of their holdings as a long-term investment.
Investors do not provide millions of dollars of ether to projects to benefit the founders' pockets, but to finance the blockchain networks developed by the projects so that they can focus exclusively on the development side of the projects, not on investments.
Krug, who remains the chief information officer of $ 1 billion of cryptocurrency hedge funds Pantera Capital, explained:
You should invest or start / run a fund or manage your capital, but the encryption projects should not do it
– Joey Krug (@joeykrug) September 4, 2018
Linda Xie, co-founder of Scalar Capital and consultant of 0x Project, echoed Krug's sentiment, stating that Augur's decision to focus on the construction with the funds raised in its sale of tokens was appropriate  You and the Augur team did the right thing and I advised the projects to do the same. It is easy to see all of this in retrospect, as the price of ETH could easily have gone from the other side while it was being built.
– Linda Xie (@ljxie) 4 September 2018
Crypto projects are recommended to use funds raised for development
Given that Xie, who works with many companies related to cryptocurrency and some of the most important projects Ethereum stressed that startups should focus on development rather than managing a hedge fund with capital raised.
At least in the initial phase, projects should allocate all their resources in the development of protocols and platforms, considering that investors in the market have invested in projects to do exactly that.
Cover photo by Evgeni Tcherkasski on Unsplash
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