Blockchain Basics: Asset or currency? The implications of ICO and bitcoin investment
A third of ICO investors believe that they have been deceived and require retribution
A third of investors who have invested in ICO consider themselves cheated
More than half of investors are ready to support startups again
SEC is already investigating some ICO projects
About 33% of American investors in ICO projects are sure that the organizers of startups deceived them and demand that the fraudsters be brought to criminal responsibility.
Half of investors are ready to invest in ICO
The data of the analytical report of the Xangle company indicate that a third of American ICO investors consider themselves deceived, and 54% of them demand to bring the organizers of startups to criminal responsibility. According to investors, startup teams deliberately distorted or hid information about the project in order to attract investment. A few months after receiving tranches, many projects simply ceased to exist, and the organizers themselves were hiding with investors’ money.
However, 56% of the investors surveyed are ready to re-invest in ICOs, provided that they are provided with comprehensive information about the project. Another 17% of investors could not decide whether they were deceived or not.
Xangle Study Data
Commenting on the survey results, James Junoo Kim, co-founder of Xangle, said:
“The survey results confirmed our belief that the cryptoindustry opens up a lot of opportunities, but more transparency and specificity is required from projects”.
DeFi may repeat the ICO path
The rapid development of the decentralized finance market is very similar to the surge in the popularity of ICO projects in 2017. Three years ago, crypto startups were growing like mushrooms after a rain, and also quickly disappeared from the market with millions of investments..
A similar situation is observed today. DeFi ProjectsDecentralized Finance (DeFi) – this is financial services, technology-based blockchain that offer users access to open, effective and … More appear almost daily, but only a small part of such startups can become profitable. Both domestic and foreign experts are sure of this..
“DeFi is now growing on hype. The situation resembles 2017, ICOs and, of course, we need to prepare for the fact that most of the startups in the DeFi field will close [and] go bankrupt. History will repeat itself again, as it was in 2017, “said Gleb Kostarev, Development Director of Binance in Russia..
Indeed, many ICO projects turned out to be a soap bubble, and some consultants of such startups came under investigation. One of them was the notorious founder of McAfee John McAfee. He was arrested in Spain on several occasions. Upon arrest, he was charged with tax evasion.
“He also“ falsely claimed to be an investor and / or technical advisor when he recommended several ICOs. In fact, McAfee’s tweets were paid promotions disguised as impartial investment advice, ”the SEC said in a complaint..
According to the data, McAfee did not submit tax returns for the period from 2014 to 2018, that is, at a time when the market saw a rapid growth in Bitcoin and an ICO boom..
The indictment says that over four years McAfee made millions of dollars promoting ICO projects in which he acted as a consultant, as well as advertising cryptocurrencies and selling copyrights to his life story for a documentary. At the same time, the crypto millionaire did not pay a cent to the US state treasury..
“The cryptocurrency world is developing rapidly. A large number of progressive adherents of cryptocurrencies consider DeFi a new round in the development of the industry. For this reason, a big hype appeared, which led to a significant increase in the number of DeFi tokens. Many believe that these are, in principle, the markets of the future. They say that DeFi will be able to replace the banking, credit systems, and a number of other instruments, to solve certain problems that are now expensive and complex. I do not deny this possibility. However, I believe that at the moment this instrument is overvalued in the same way as at the time – ICO ”, – said CEOй BTC-Alpha Vitaliy Bodnar.
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