News Tech

The Crypto-Currency Fad

Late 90s marked the increase of value of shares in any company with after its name: The promise of the Internet

The Crypto-Currency Fad July 21, 2017Leave a comment

Then it all faded away.

Crypto-currencies like Bitcoin are the newest technological investment bubble. Initial Coin Offerings or ICOs have been over $1bn raise so far just this year from investors who don’t receive anything but a token and a promise surrounded by ambiguity of participating in a relatively new business.

What is ICO? It is a term devised to mirror the IPO that supervises a firm issue shares and float on a stock exchange. It might seem a bit different to various people.

Blockchain technlogoy underpins Bitcon and similar currencies to create business. The earlier version were just simpler methods of launching a new crypto-currency.

Smith+ Crown researches the crypto-currency prospect also listed the ICO projects which is a business raising money to generate the world’s most money making lottery based industry on blockchain it also promises to use digital tokens to rent out great quality office spaces.

Pavlo Tanasyuk is the founder of Spacebit who is not afraid to explore unchartered territories when it comes to this new investment method.

Pavlo aims to create “a distributed space agency unshackled by state or national sponsorship”.

He will be inviting investors to take a stake in this business venture next month. Payments will be accepted in Bitcoin, Ethereum or any other crypto-currencies.inreturn the investors will get tokens and also a vital role in deciding how the business will be run.

Frances Coppola who is a fianance blogger compares ICOs to the tulip fever that happened in 16th Century and various other investment methods that were mere bubbles.

“The enthusiasm for ICOs is coming off the back of the Bitcoin and Ethereum booms,” she says.

She also warns that such investment methods are not regulated and she fears that people investing in these types of schemes don’t have any idea what they are getting into.

She said that this scheme is also prone to scams and regulators should also look in to the possibility of becoming victim to them.

Pavlo also admitted that there is significant amount of risk in this type of investment.

“Ninety-five per cent won’t deliver – but we will. It’s important to set an example. We’re doing something real and have a strong management team in place.” These are his own words.

The demise of bubble brought a shock for investors who did not really get the idea of what is the purpose of firm they were supporting actually did or the type of challenges they faced.

Now today the scenario of crypto-currencies and the blockchain seems even more opaque.

The investors who are looking into funding this vision and who have purchased the coin to do so should also read the disclaimer in the white paper:

“Neverdie Coins and Teleport Tokens do not represent ownership in any real-world companies. These tokens are designed to activate virtual utilities.”

With no regulators keeping an eye on scams and frauds, the possibility of investors losing their money to them is pretty much high. Let’s hope who is planning to back these kind of schemes are investing while keeping their eyes open.



Leave a Reply

Your email address will not be published. Required fields are marked *