With ICO prices determined outside active markets and based on incomplete or misleading information, the hype machine itself has become the new source of work that must be performed for a token to gain value. But there is little value for the token issuer in continuing this type of work after the ICO. And besides, they shouldn't.
The work that needs to happen after the ICO is the development of the promised platform.
Delivery on the pre-ICO promises is what will give any ICO tokens value in the end. Unless that work happens, unless the promised services start being delivered, the value of Ethereum and other cryptocurrencies will continue to drop as the bubble of each ICO's promises gets popped.
“But wait,” you might say. “My tokens went up! I made a pile of loot off the AmazeBalls ICO!”
That's super, but your pricey ICO tokens may still be inflationary. Inflation is marked by rising prices and falling value. Price and value often take time to meet up, and the economics of ICO token distribution don't help matters.“Pure POS”
Tokens created on the Ethereum network exist as "pure POS" tokens, regardless of whether the Ethereum network is POW or later becomes POS. By its nature, a pure POS token—one where the total supply of tokens exists from the outset at its creation—experiences 100% inflation in its first block.
The inherent value of a pure-POS token at its outset is practically zero. No work was done to acquire it, and no demand exists for it. If its purpose is fundraising, the issuer will need to distribute it to funders at a price higher than zero. The token issuer wants to exchange the present zero value of their new token for the present positive value of another, like ETH or BTC. The issuer wants to exchange their worthless new money for valu...