Ethereum and Ripple Founders: Most ICO Organizers Are Scammers
Many ICOs simply copy each other, and their organizers do not plan to release a product that could solve any problem. Ethereum co-founder Joseph Lubin expressed this opinion in a conversation with CNBC at the Singapore Fintech Festival. Although Ethereum is the largest and most attractive platform for fundraising cryptocurrency startups, few of them are ready to present truly valuable developments..
“Given the political approach of China to various things and the off-scale level of fraud, it becomes clear why they decided to suspend the flow a little and engage in a deeper study of this ecosystem, thereby scaring various types of criminals,” Lubin said, speaking in defense of the Chinese leadership, which recognized the ICO illegal method of financing.
A similar point of view is shared by the founder of Ripple Brad Garlinghouse: “I think that a lot of what is happening in the ICO market is a scam. Someday it will end “.
Some believe that the experience of the startup Tezos, whose investors are dealing with the organizers of the project in court, could become a precedent that would lead to other cryptocurrency startups also having to answer for their actions. To date, there are practically no existing instruments that could protect investors in this market..
The US Securities and Exchange Commission and other regulators are warning investors about ICO risks and are planning anti-fraud campaigns. Lyubin believes that regulators should understand how the technology works and what advantages ICOs have before doing anything..
Recall that earlier Lyubin said that the cryptocurrency market is a financial bubble that increases the value of the entire ecosystem.