People act under the assumption that the power law is some fundamental property of the universe. But it seems the 10x effect exist partly due to network-effects, and partly due to a minimum barrier requirement for liquidity. It's economically infeasible to support mini-size IPOs because the fixed overhead cost of regulation, auditing, legal work, and underwriting is too high.
With all the stigma associated with ICOs, lower barrier to liquidity may be a good thing overall. The power law phenomenon incentivize entrepreneurs to take excessive risks and force VCs to adopt extreme portfolio management strategies.
With all the stigma associated with ICOs, lower barrier to liquidity may be a good thing overall. The power law phenomenon incentivize entrepreneurs to take excessive risks and force VCs to adopt extreme portfolio management strategies.