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It doesn't matter because there's no incentive for companies that raise to do this. Dumb money is easy to raise, why try to fight for smart money? In other wor
by landryraccoon 9y ago
It doesn't matter because there's no incentive for companies that raise to do this. Dumb money is easy to raise, why try to fight for smart money?
In other words, you could come up with this really complicated scheme to verify trust with your ICO in order to win over savvy investors. Or you could just hack together a buggy, insecure ICO in a few weeks and get flooded with retail investors clamoring to get their dumb money into any crypto they can lay their hands on. Barely computer literate friends and relatives have asked me recently how they could get into crypto. There's virtually an army of these woefully uninformed "investors" to get money from in an ICO. Why the heck would anyone lose months (at a minimum) of development time to build some trust that nobody cares about anyway?
- Thriptic 9y agoAfter this bubble inevitably collapses, the dumb money will largely exit and people will be forced to deal with smart money. Moreover, regulatory agencies won't tolerate this level of fraud long term. Either ICOs need some sort of regulator or they will be banned.
- TeMPOraL 9y agoAssuming crypto survives (I personally hope it doesn't), escrow will happen - after the bubble collapses and the dumb money exits the market.
- landryraccoon 9y agoThat's a big gamble. If that's what you're banking on there's a high risk that regulators will simply overreach and ban any type of ICO, or at least ban ICOs except to "accredited investors". You could build a trust system nobody trusts anyway, because the concept is discredited.