Transparency and prevention against founders loopback attack to the IPO

SDLernerSDLerner Member Posts: 2
I read about the IPO but I cannot find the details of how the IPO will be technically conducted and how transparency will be enforced.

There is an obvious loopback attack that can be prevented by BTC investment transparency and the lock of the BTC funds during the IPO. The "attack" is simple: people but ETH with BTC, and these BTC go to a automatically generated Bitcoin address. Then the founders use these BTC to buy more ETH, several times, multiplying their investment.

I know this will be prevented and I'd like to know how.

Comments

  • JosephLubinJosephLubin Member Posts: 5
    Hi Sergio.

    Yes it is an important issue. We have been debating both sides internally.

    Leaving all the BTC untouched until the end of the sale would make it clear that we weren't doing any "churning."

    On the other hand, using a well-defined amount of the BTC revenue before the end of the sale to pay some bills would be nice.

    We have been getting by paying our own expenses and internally funding so far, and we may choose to continue doing so until the end of the sale.

    Either way, before the sale starts we will make clear which of these options we choose.


  • zawyzawy Member Posts: 26
    edited July 2014
    Pre-sale is a death-nail. The Ethereum team should be paid as they succeed, not before. Payment to operate the nodes and coders should be based on transaction volume. If ETH succeeds, it gives a "dividend" by an increase in asset value. Both are taxed as capital gains. It gives a "voting right" for transactions on the block chain. What prevents coders abandoning the project after the presale? I suspect the only way to prevent abandonment is to make it look more like an IPO...to give ETH "shares" to founders. A fish not called a fish is more fishy than a fish.
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