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Investing In ICO Hype Continues – Bankers Cash In On the “Fast Money”

Bankers Cash in on ICO Craze

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Initial Coin Offerings have been “categorized” as a get-rich quick schemes by many critics of the blockchain community critics – – perhaps this decade’s equivalent of the dot-com bubble.

But get-rich quick scheme or not, ICOs continue to soar in popularity, and the mainstream financial sector is calculating how it can get its slice of the pie.

According to Bloomberg Technology details many cases  of financiers have been reported of ditching very good paid careers to to have their ownership in the burgeoning ICO empire.

As Bloomberg announced – Richard Liu as left a seven-figure salary to be part of the Fintech Blockchain Group a fund that has put its money into 20 ICOs already. Liu stated that ICOs are attractive from his standpoint because the potential windfall is not bound by the constraints of the traditional financial sector – only the imagination:

“Unlike the traditional financial sector, there are no ceilings or barriers. There’s so much to imagine.”

 

Another appeal of the ICO boom is the relative lack of regulation. The U.S. Securities and Exchange Commission (SEC) released a report suggesting ICO tokens could be subject to securities regulation, but thus far ICOs have managed to skirt by under the regulatory radar.

According to an analysis by Autonomous NEXT, ICOs have raised more than $1.2 billion in 2017 alone. That is a staggering number, especially considering that Ethereum – the platform upon which most of them are based – raised only $18.9 million during its 2014 ICO. TezosEOS, and Bancor each raised more than $150 million during their recent ICOs (The EOS ICO is ongoing); for comparison, the average 2017 Hong Kong Initial Public Offering (IPO) is just $31 million.

Consequently, they provide scammers with fertile soil (and hackers with a target). As bitcoin miner and angel investor Chandler Guo stated:

“These ICOs are not selling shares, which means their investors will have to count on the promise and reliability of the founders … I don’t invest in any projects unless I know where they live and their mother lives.”

It’s true that many – perhaps most – ICO projects are good-faith attempts to bring innovation to the digital currency space. But others have been guilty of preying on investors’ lack of due diligence.

Investors share the blame for not properly researching and assessing the risks of ICO contributions, but some ICOs have capitalized on this get-rich quick mentality. At least one ICO, for instance, has run a Facebook advertisement declaring that its token will be “The Next Bitcoin.”

Despite the impending regulation on the horizon, it is certain that ICOs will continue to function as digital gold mines, especially as bankers enter the picture.

The Real question is who is going to make the big fortune that awaits?


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Source ccn Josiah Wilmoth
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