The block chain tokens will continue


nnnIn the past few months, ICO’s financing results have been surprising, but its shortcomings have also led to criticism, and with the SEC issued a regulatory attitude, many people think that this boom is about to end. However, from a global perspective, such activities in the short term will not turn into a low ebb. In this paper, a specific analysis of this issue, pointed out that the ICO bubble will continue, the market crash is still very far away.n
nnTranslated by: Inan
nSince the block chain start-up companies began to absorb a lot of money a few months ago, the observers are waiting for the bubble to burst, but the fact is that it continues to expand.n
nThe start-up company issues the tokens through the ICO, not the stock. These tokens can not represent the ownership or economic rights of the company, but are very popular. So far, block chain startups have sold more than $ 1 billion in tokens this year, most of which have been sold in the past few months.n
nMany of the unknown start-ups that are financed through ICO now have more money than some of the old chain-chain companies. Tezos and Block.one each raised $ 200 million through the ICO, twice the amount of R3 and Ripple financing.n
nThis is simply not possible. While distributed book technology is certainly revolutionary, some companies will succeed, but it is surprising to be able to raise so much money by providing tokens on service token. Many people predict that the market will collapse. However, there are some reasons why this result is not too fast.n
nPeople did not slow down the investment in ICO. A market executive said he had a friend who entered the “next major ICO” search directly in Google and wanted to find a token that could be sold to make a profit because almost everyone was doing the deal.n
nA large number of hedge funds are making full use of this trend. Probably they do not see themselves as long-term investment prospects, but understand that the market is very hot, they will be able to trade as soon as possible after the release of these tokens to profit.n
nFinancial executives said they would raise $ 50 million and raise $ 100 million in initial $ 3 million and $ 3 million.n
nAnd the marketing of these activities is minimal. Iqbal Gandham, managing director of eToro, an online trading and investment platform, says the company’s white paper for ICO is usually “little about the team, with little or no product, most of which only has four pages.”n
n”The market is out of the foundation and there will be a lot of overfunding,” said Toby Lewis, founder of Novum Insights, a provider of zoning business data. “When people look back at all this, How many of the tokens are financed, but investors still have great expectations for it, because the good token will bring huge short – term benefits.n
nSEC last month announced that many ICO or tokens will be regarded as securities, some people think that this marks the end of this boom in the United States. The SEC provides investors with the same way as securities, for example, when the activity violates the securities laws, one can ask for a return to his own funds. While lawyers think there will be a lot of irregularities, which may be easy to combat confidence and affect the future.n
nBut that’s the situation in the United States. Many start-up companies are not geographically blocked, ICO boom is expected to be more crazy in Europe. Oliver Bussmann is the chairman of the Crypto Valley Association, a Swiss nonprofit organization that distributes distributed books technology, according to him that there are more than 40 ICOs in Europe and more than 170 in. This means that the market will still be busy, especially in September and October.n
nSome people say that he understands that a company that intends to conduct an ICO can not even find a lawyer to build an entity because they are all booked.n
nIf this boom continues in the fall, it is likely to last until next year.n
nThere are probably three situations in which this boom can be terminated in the area. The first case is that investors are aware that they have purchased the tokens of the start-up companies do not operate normally. From the 2001 Internet bubble lessons, this company, 10 home, nearly 9 will fail.n
nBut all this may take some time to appear.n
nTechnology is still in development, companies are still exploring, and may have a little time to prove themselves.n
nThe second case that could break the bubble is regulatory change. However, while the UK and European regulators may follow the SEC as a token as a security, there is no sign that they will take such a move now. The SEC’s move also has a lot of unclear places, such as how much ICO it can affect, whether it applies only to US companies or to foreign companies that have US investors. If the United Kingdom and Europe to put an end to this ambiguity, you need a slow and complex process.n
nThe third case is the impact of network attacks. Last month, an ICO trading platform was black and stolen $ 7 million before the company canceled tokens. Emerging technologies are often fragile. But the attack should be extensive and frequent enough to dispel the confidence of the entire market. Many start-up companies do not even have a full-featured product worth invading.n
nThere is no doubt that the block chain ICO boom continues to be longer than people imagine, the founder of the start-up companies that almost all want to try to coin sales are eager to complete the work as soon as possible. Therefore, the collapse of the market may still be very far away.n
nAt the same time, the market bubble will be growing.n

Leave a Reply

Your email address will not be published. Required fields are marked *