Ethereum Founder Discourages Token Startups From Developing. Many initial coin offerings or ICOs have been popping up as a means of raising funds and promoting cryptocurrency actions in many forms. However, the founder of the Ethereum cryptocurrency is encouraging such token startups to watch out or to even reconsider such actions. This comes with the belief that many coins are not going to work out as well as people might think they could.
Vitalik Buterin has become one of the most popular figures in the cryptocurrency world as he is the co-founder of Ethereum. He made remarks at the ETHWaterloo hackathon event suggesting that most who try to get into the token industry are bound to fail.
Specifically, Buterin said that about 90 percent of all token startups in the industry will fail at some point. He says that many of these tokens are going to be poorly produced or planned without much of an effort in figuring out something specific or distinct. He even felt that many of the coins that are being produced are actually scams.
Even with this in mind, Buterin does feel that the struggles of many startups right now could lead to the development of better and smarter currencies in the future. This comes as there is a great deal of experimentation in the industry with many parties doing what they can to produce more distinct or unique coins.
He argues that there are no definite standards that could truly be seen as successful as there is no real way how people can figure out what works best in the cryptocurrency industry. This comes as the coin system is being regulated in many forms and is working in numerous ways to change and improve the field.
Funds Are Still Being Raised
Even with Buterin’s warning about how cryptocurrencies are difficult to produce and maintain, funds are still being raised for many of these coins. The Tezos blockchain is a particularly prominent example in that it has raised nearly $250 million during its ICO. This is one of the coins that Buterin has been rather critical of in recent time.
In addition, most initial coin offerings are still being introduced on a regular basis. Websites around the online world are highlighting individual ICOs and providing white papers to people who are interested in them.
The remarks also come amid concerns over how coins are not being accepted in some parts of the world. This is especially the case with China as the blockchain and many of its concepts have not been embraced within the country. The worries about governments like the one in China potentially trying to regulate the blockchain system have also been concerning, what with the blockchain being a system that is supposed to be decentralized.
The words from Buterin still suggest that there is a legitimate concern that ICOs could be risky and difficult for people to get into. This particularly comes amid worries that many of these coins are not as useful or legitimate as what people might wish they could be.
What is your opinion about the subject?
Nice post, very much appreciated
ICO – Good to keep ourselves updatoued, you do a great job Vlad