Mmmm... not sure I agree with Xeroc (and we've had some great debates over the years). The liquidity and visibility that would be brought to BTS and STEEM during the ICO would far outweigh any other potential drawback. And there is no way a bunch of smart people are going to 'dump ETH into oblivion' if their entire war chest is denominated in ETH. It is in fact in their interest not to dump ETH.
Using BTS and STEEM as the funding tokens would create huge demand over the next year and then lock up a bunch of liquidity with the EOS team, which would be slowly released to fund development.
read: Xeroc is wrong and crowdfunding EOS on BTS and STEEM would be awesome for both the communities and Graphene.
I think (I could be very wrong) what is going to happen is EOS is going to raise a ton of ETH in the next year. Then dump it to pay for the EOS project.
Yes, I agree they will raise a ton of ETH... but dumping is a bit overstating the market impact of selling off the ETH to fund development. ETH markets are very liquid releative to EOS overhead, won't make a dent (ie. they won't destroy ETH market cap because that would be silly if they are funded by ETH and the amount they will sell to pay the bills is so small it won't be a dump). But it will lock up a ton of ETH and inflate the market cap.
There's some head scretching going on here. What I did notice about Graphene base ICOs is they start with only Bitcoin, then latter on take BTS, BitUSD, Steem, ect. Maybe if enouth people say "I'll only buy with BTS, ect". They will open the door.