In an era where the digital token is gathering a large market, Joseph Lubin, co-founder of Ethereum and Brad Garlinghouse, CEO of Ripple have stated their disbelieve in Initial Coin Offering (ICO).
Many start-ups nowadays opt for issuing digital currency in order to raise fund. Initial Coin Offering (ICO) is a fundraising process wherein investors receive some amount of digital currency in the form of Bitcoin which can be used to in exchange of getting entirely new tokens for redeeming the service offered by the firm. However, the investor doesn’t possess any basic right to the start-up firm. The two industry bigshot—Ethereum and Ripple have opposed this system and warned the investors of fraudulent/ copycat projects that will yield negligible benefit for the investors.
Ethereum CEO, and the founder of the blockchain software company Consenys, Joseph Lubin, stated that a lot of copycat companies are issuing digital tokens that are from China and this is the reason for Beijing’s ban on new token sales. He calls it an appropriate approach to stop fraudulent projects. The CEO of Ripple also shares the same view with that of Ethereum. Brad Garlinghouse is of the opinion that the token issuers are currently operating in a grey area and eventually there will be an end to it.
Bitcoin is the largest cryptocurrency in the financial market, and even with such scepticism, Bitcoin created an upsurge on Friday with a value proposition of $8000. Some people are of the opinion that it is just fear that is creating such rumours while others believe that it is too early to predict anything because Bitcoin is still in its initial stage for creating a revolution in the e-commerce market.