Ethereum has gotten to the point where it works, and there’re already projects being launched. Why is it important? I mean how do you make money on this? So the crowd sales happened in 2014…
Yeah, same for Ethereum in July of 2014.
Alright, so that’s really a new way to raise money, like crowd sales. So you know, the idea is that, let’s say you have an idea, right. You need to raise, I don’t know 5 million dollars, 10 million or whatever amount of money you need to raise. What you can do is you can create these tokens and sell them like shares, just like when we bought the Ethers.
They sold 66 million others. I mean there was something like 31,000 Bitcoins and so they issued 66 million Ethers and they kept about 10 million for themselves. They kept some for the foundation, they kept some to pay the developers with, they kept some for themselves as their own equity in the project.
So it allows you to create a project, and then you can buy tokens. You can’t say the word stock because if you do the government or the SEC will get involved. It’s more like a gift, a donation. It’s a gift or it’s a donation and they give you these tokens and, remember they’ve never called the Ethers that we bought ‘stock’, or ‘money’ or anything. Remember it was a donation.
Yeah, it’s just the Ether.
Yeah, it was the Ether. I’m buying a token, I’m giving you some Bitcoins and all I’m getting back is this token that I can use when I want to participate in that network in the future. It’s not a security, but it accomplishes the same purpose as a stock which is to raise money.
And in exchange for equity in the project and typically the cryptocurrency that they’re issuing is the currency you’re going to need to use the product. Just like we bought the Ethers and it has value because you’re going to need the Ether in order to run the distributed apps in the future. There’s actually nothing you can do with them right now, even today. There’s really nothing you can do with them besides send them off to someone else and get Bitcoins for.