As they say, cryptos are the tulip bulbs of our time. Investors are going crazy for them just like the Dutch were somewhere in the 17th century. But, unlike the tulip bulbs. Initial Coin Offerings (ICOs) are just some half-ass promises that you will be richie-rich in no time.
On The Quartz Index, around 1,000 digital currencies had no success whatsoever. They just completely failed and never got to see the sunnier days. Despite all of this. Guess what? ICOs are still boosting up! Why? What is it about crypto that have people hooked so badly?
There is a blast of ICOs! Its surprisingly gaining momentum as more and more crypto hit the market constantly. It’s never-ending cycle. Everyday a new crypto is introduced in the market. Investors are just freaking confused now! They don’t know what to do. The one thing they do know? They don’t want to be left out from all the fun and profits. So, that’s how these investors keep on scooping up the newest coins from the market.
Companies have raised $11.9 billion dollars in 2018 according to Coinschedule, and the number keep multiplying everyday. So, what is the key behind all the ICO craziness?
Easy Money Babe!
All you have to do is switch on your computer and press a few keys. It doesn’t require you to buy and fix a new house. You absolutely don’t have to visit a broker to buy some stocks. You just have to buy whatever token if you want to.
Regulation? Whats That?
Well there is absolutely no regulation. The SEC, FDIC, CFTC or other watchdogs are the least of anyone’s concern. They are completely sidelined and can watch the show. But, can’t do anything about it. Coins can be launched everyday because there are no laws to be followed. Even though it seems like there is no regulation, the regulators always find a way to regulate. Its going to take it’s time, after all its the crypto-world is the wild west.
Lets be honest, if you’re not required to register yourself with an agency or just prove that you’re actually legit. What happens? SCAMS! The more people can be scammed very easily. ICOs are risky investment because of this. We won’t lie to you, there have been many scams and things got ugly!
There are people who just hit the button with their eyes closed. Who does that? It’s hard to believe. But, thats just how it is. Unfortunately, people don’t do any prior research on the management of the company. It’s super important to looking into the team, analysis reviews and reports before you decide to buy a token. However, people just take the easier way out and hit the damn button to purchase it.
Coins just pop out of thin air! The potential of blockchain has been recognized. But, something needs to be done about this ICO craze. At least there should be a way to stop the scammers from running away with the money. It’s bad for the cryptos rep!
What do think can stop all these scams?? If you have any brilliant ideas to save the crypto-vese let us know below!