Vitalik Buterin: ICO concept has been abused, 90% of the project will fail

With the increasing number of encrypted ICOs in ecosystems, it is clear that most of them will not be as successful as they say. This new type of fundraising is attractive, but it does not automatically translate the concept into a successful product or service. "The ICO market in a major bubble," said Vitalik Buterin, co-founder of Towers Square . He also believes that most of the projects will eventually fail. This view is not positive, but it only reaffirms the fact that most sensible investors have known a few months ago.

Most of the ICO projects will be fiasco

As with all emerging industries, there is no way to achieve a balance between success and failure. Projects and teams simply because they have enough money to open a concept does not mean that they can eventually create a viable product or service. Even if they really to the final stage may also face failure, investors may also lose money. This view is not seen in the field of ICO, but unfortunately, this is the fact that we need face sooner or later.

In the world of encrypted currency ICO, a clear bubble is shaping. The number of new projects each week reached dozens, and all with a groundbreaking concept of self-claims, to meet the various needs of investors. The common denominator between them is that nine of the 10 projects are unable to provide product demonstrations. Even if the white paper illustrates the technical goals that the team is about to achieve in the future, it does not reflect any value.

Terry Square co-founder Vitalik Buterin recently described the ICO market bubble phenomenon. His remarks made a lot of people shocked, but it was a good thing to see such a respected public figure to say something we knew. His advice to investors revolves around the theme of "the unsustainability of current large-scale tokens selling trends". Indeed, most of the hundreds of new ICO tokens that emerge each month are due to speculation and frenzy of emotional success, rather than because of technical value.

Speaking of encrypted money ICO, it seems that some situation out of control. The process of selling these tokens has brought a lot of problems to the tower network. Before the situation continues to deteriorate, the necessary control measures need to be introduced. At the same time, Buterin also pointed out that we should not underestimate the value of ICO. The industry will still be a successful project, but this part of the project accounted for a very small number.

Buterin summarizes the ICO bubble:

What we have recently seen is that people have overused this concept, and there are too many items to issue tokens not because it makes sense for doing so, but because they have a product that can be sold and replaced. There is no business model without tokens. This phenomenon has led to an imbalance in the current community incentives.
Assuming that the ICO market is completely collapsed - to some extent it can be said that China's regulatory measures are credit - things will move in different directions. ICO market needs a period of calm. Once the investment mistakes, people will face financial losses. Investors must make their own adjustments, rather than direct investment in all ICO projects. Some projects have a high valuation and will only bring higher expectations and market pressures. This is an unsustainable model in the current situation.