The current state of the ICO industry has been criticized by Ripple CEO Brad Garlinghouse and Ethereum co-founder Joseph Lubin in a recent interview. Although many “high-quality projects” are using ICOs as a fundraising vehicle, the pair expressed concerns that many “copycat projects” have raised money without “intention[ing] to deliver any value to the people buying the tokens.”
The CEO of Ripple believes that regulators must catch up to the ICO industry.
The CEO of Ripple and co-founder of Ethereum, Vitalik Buterin, has slammed the ICO industry.
Brad Garlinghouse, the CEO of Ripple, believes that “a lot of what’s going on in the ICO market is actually fraud,” citing the growing number of ICOs facing legal action. Despite his concerns about the actions of many token sales, Garlinghouse believes that once regulators catch up with the industry, fraudulent activity will “stop.”
In addition, Garlinghouse claims that token issuers are currently operating in a legal “gray area” while waiting for regulators to catch up with the industry. The futures markets, according to the Ripple CEO, may prove to be analogous, as developing a regulatory framework for the futures markets took a long time.
“There are a lot of really fantastic things that can be done with digital assets and blockchain technologies to reduce friction, lower costs, and enable things that were previously impossible.” Instead of concentrating on those, I believe we’re being distracted by what’s going on in this gray area.”
China’s ICO ban, according to Ethereum’s Joseph Lubin, is a “appropriate approach.”
The CEO of Ripple and co-founder of Ethereum, Vitalik Buterin, has slammed the ICO industry.
Although many “high-quality projects” are conducting ICOs, “there have been a lot of copycat projects where people copy all the same materials (and) don’t intend to deliver any value to the people buying the tokens,” according to Joseph Lubin. Many of the alleged “copycat projects” were based in China, according to Mr. Lubin, prompting him to support China’s decision to prohibit token sales within its borders.
“With China’s political approach to things and the rampant fraud there, it made a lot of sense for them to pause things a little bit and get a better, deeper understanding of the ecosystem, as well as scare potential fraud perpetrators,” Lubin said.
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