: Are Ethereum Smart Contracts a Viable Way to Invest in New Companies? A relation's company is thinking of going with Neufund, and use their guidance in order to develop smart contracts for investors to invest in their company.

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I need an investment in my coin-op car wash to add a compressed air terminal. You come to me and say I'd love to invest, here's a bag of diamonds. I can't spend diamonds. You respond to me, don't worry it's on a smart contract so our agreement enforces itself and diamonds might go up in value too!! But I need an air terminal.

A company that needs investment needs something it can spend. It really doesn't matter how fancy the tech that delivers the capital is if I can't use it to install a compressed air terminal which is why I needed the capital in the first place. And your smart contract won't do much if I gut the account when I convert your tokens in to something I can actually spend.

There's a practical disconnect that exists with crypto starting primarily with the fact that they, largely, can't be spent right now.

Notwithstanding the fact that you'll need a serious bankroll to manage the regulatory hammer that will come looking for you if you achieve any degree of real success underwriting any sort of security issue with a smart contract.

And YOU should be verrrry wary of a company that is looking for your bag of diamonds when it says it needs a compressed air terminal.