Do a quick test in google...
Search: "create your own cryptocurrency"... I'll wait. Back? good, now you've seen just how easy it is to start a crypto currency. That should concern you. Now I'm sure I'll get comments like "it's not that easy" or "hey dumbass don't tell me you can launch an ICO in a day" and to that I say... Yes, I probably could, infact, I think it's says just 10 minutes...
[https://cryptonotestarter.org/]
My point is this... ICO's are raising millions of dollars, influence the future of crypto, have no oversight and regulation. There is no standards, no transperency, and no mechanisms of investor protection. In recent news, ICOs are routinely being hacked, used as a method of scamming, and some are just pipe dreams or hobbys gone dead. It's fast money, and the real big villians havent even moved in yet. Wait till organized crime gets in on this. It can destroy the market, kill the future of Crypto and basically leave legacy coins the only somewhat safe investment.
The only way for the market to expand is for people to feel safe moving some of their money from fiat, to crypto... Only way that will happen in a proper growth is for crypto to be more stable, and relatively safe.
Now lets be clear... THIS IS THE FOUNDATION OF PUBLIC LEDGERS / BLOCK CHAIN... Your money is safe, cause noone controls the currency... ICO's while necessary to kick start a new currency are jeopardizing the revolution that is block chain, and here's why...
You are left with limited tools to vet a new ICO. Most people are limited to word of mouth, sketchy chat groups of crypto traders, and youtube personalities in order to "get in" on the next big ICO. Some visit sites listing 33,000% gains on ICO's and their mouths water hoping to turn their $100 into .... big bucks. These promotions of easy money, and unbelievable gains have created a mad dash for investors to ICO's, but without vetting properly an ICO, scams and lack of reponsible management, security procedures and the like is near impossible for individuals to do properly. Sadly without that type of research people may be better off throwing their money on a roulette table. More than not as of recently, ICO token rates hitting exchanges plummet to half for the most part take months to recover, so ICO's are necessary yet not very profitable as of late.
So the solution? It is my opinion, but a 3rd party organization / DAO, or non-profit, possibly even block chain based, should be established to vet, investigate and provide a level of certification for credible ICOs. Providing a qualified seal of approval, or certification or something similar can be assistance to a investor that at least a base line level of protocols is being followed for the main sectors of a coin. In order to maintain the freedom of crypto I believet hat this organization will not demand or interfere in anything, yet only provide a stamp of approval if certain criteria were met. In an effort to assist investors and protect the industry.
It is important to solve this problem moving forward. Investors loosing money to things other than regular market activity is not only going to slow the growth (or stall it), but create grounds for governments and banks to get laws passed against blockchain and crypto, push investors out of the market and create resonating bad press.
I'd expect that many will say, crypto must be open, free, and without governance, and to them I say.
The overall human benefits to crypto are to the moment untested, I believe that blockchain will change the very fabric of our societies within 10-20 years. It would be ignorant to resist any mechanism that helps those benefits from being realized sooner.
Public information is at the core of blockchain, and ICO's are a necessity, let us prevent those who wish to exploit the lack of regulation and oversight from doing so, lets make an establish mechanism to do so that is fair and impartial, and only interested in the health of the technology and it's benefit to all.
If there is something and I am just not knowledgeable of, please Troll below.
yup, we all should be carefull!
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