Why SETHER is not getting my ETHER - Oracles and Vaporware

(to all purposes, this is fiction)
Today Mr. Positive Blue and Mr. Negative Red meet Mrs. Inquisitive Brown to talk about mainstream payments. Mr Neutral Black has made a through reading of the document and Mr Technological Green is around just in case. Mr Market Purple has joined today for a beer.
- I read the SETHER White Paper, and I have quite a few questions now.
- This project comes from a company that works in social networks analytics and plans to develop an Social Networks Oracle.
- They seem to have a good team, good programmers.
- The product is much needed.
- But, what is an Oracle?
- Do you know about Smart Contracts? Remember, those are programs that are coded into the blockchain and can be called and executed in trust-less manner?
- Yes, we spoke about them a while ago in the Quantstamp entry.
- Ok, these contracts are very good at dealing with information that is already on the blockchain, but they need to interface with other "real world data".
- For example?
- If you want to make a blockchain payment for an add in Facebook, the smart contract that does the payment needs to know that the add has been published.
- Oh, OK, and that would work also with other stuff?
- Indeed, sports results, exchanges quotations, ... anything.
- SETHER is developing an API so that smart contracts can use it as an Oracle for events that happen in Social Networks.
- It has huge potential. Is a much needed tool with hundreds of use cases.
- The technical base seems also quite good.
-So, should I invest?
- I would not.
- But, why? It sounds terrific!
- These people are great programmers, but their business proposition to the investor is awful. Firstly, there is a huge hardcap. If it is reached it would mean valuating the tokens (not even the company) (they sell 50% for a hardcap of 165,000 ether, currently all tokens would be 132M USD in value).  Second, there is no softcap. They claim that the project will go on no matter what the contribution is.
- What are the consequences of this?
- As investor, I do not know how much am I paying for what percent of the tokens. That is, if I put 1 eth, what percent of property (of tokens) do I have. It is blind investment. Also, not having a hard cap an claiming that they would do the project anyway means that they do not need my investment, so they are just using a good opportunity to get additional funds to try to do a faster development.
- That approach to software engineering is not adequate for innovation. The rationale behind this is "let's get as much money as possible so we can hire a workforce as large as possible to finish this".
- So... is that possible?
- No. It does not work like that. Growth has to be managed or the chaos will eat up the funds with meagre results.
- Are there any other red flags on this project?
- Well, not really a red flag, but there is going to be a huge competence and this guys do not seem to have a good market strategy nor a pre-existing customer base.
- So... they won't succeed?
- They may succeed, but the risk does not match the reward. Particularly with that ridiculously high valuation of a software that does not exist.
- If the software does not even have a prototype (they only have a proposed API definition), the team is good but not world class, there are not pre-existing clients, no strategic partners... I have to agree, the valuation is not correct. I am out.