Bitcoin has made it possible to make crypto currencies interesting for the general public.
Rapid increases in the past few years attracted more and more speculators and suddenly everyone is talking about it. This is also the reason why more and more of these digital funds are coming into position and wanting to get a piece of the big cake.
More and more startups from the crypto area are shooting out of the ground and collecting money from investors, which in return receive token of a new digital currency. Later they can then be exchanged for products or services of the start-up or against other cryptic diseases.
ICOs shoot out of the ground
This process is called ICO – Initial Coin Offering. However, there are already an extremely high number of these ICOs and also many different crypto currencies. Only in the second quarter of the current year were startups from the Blockchain industry nearly 800 million US dollar (665 million euro). This is more than the triple, which got startups from other areas as a risk capital.
The third quarter also looks similar: in the first half of the current quarter alone, 650 million US dollars (540 million euros) were invested in Blockchain startups. By way of comparison, a total of only 300 million US dollars (250 million euros) have been released in ICOs between 2014 and 2016.
The problem: With the high number of ICOs, there are also some black sheeps who are on the wave and want to collect money – in return, but their currency is virtually worthless. The proof of this already existed in July, when a completely senseless crypto token collected more than 70,000 US dollars – although it was known that it is completely senseless.
Speculators driven by greed
If the speculators didn’t even take the trouble to look more closely, but the greed and the fast money is in the foreground, vendors, who make an effort, can directly secure an even more significant pawn money. Previously, a co-founder already warned him behind Bitcoin’s most famous crypto currency, Ethereum. “Cryptography is a ticking bomb,” Charles Hoskinson said literally. Because of the dangerous development, China has now banned further ICOs. “ICOs are a kind of illegal public funding that is associated with criminal activities such as fraud and snowballing,” the Central Bank said in a statement.
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Categories: Crypto Currency