Now that everyone is getting comfortable with blockchain platforms, what’s next? Companies should look to standardize the technology, talent, and platforms that will drive future initiatives—and, after that, look to coordinate and integrate multiple blockchains working together across a value chain.
At the end of 2017 and the first months of 2018, we witnessed a surge of interest in Initial Coin Offerings or ICOs. Perhaps the word “interest” gives too much credit to ICOs. Most are scams. ICOs are pushed through by vendor hype, rather than pulled through by investor research. They are almost all pump-and-dump schemes.
But what about Bitcoin? It is not a scam, but questions remain about regulation, intrinsic value* and its likelihood to be superseded by something better. Bitcoin skeptics point to two facts: (1) Bitcoin is open source, and so anyone can create an equally good altcoin. (2) Newer coins incorporate improvements that overcome governance and scaling issues: cost, transaction speed, the burgeoning electric needs of miners, or whatever…
While both statements are true, they miss the point. This is not a VHS-vs-Beta scenario. Bitcoin has achieved a 2-sided network and it is free to fold in every vetted improvement that comes along. For Bitcoin, all those other coins are simply beta tests.
Even the functional tokens will unwittingly feed their “improvements” into Bitcoin. For this reason, it is a safe bet that Bitcoin will reign supreme for years to come—perhaps even long enough for the dominos to fall.
Why I rarely consult to ICOs or prospective ICO investors
I recently presented at cryptocurrency expos in Dubai and Gujarat. As a result of these presentations, my organization now receives ICO pitch decks, white papers and business summaries—15 or 20 each week. About ⅔ are sent by investors asking for advice as an investment opportunity, while ⅓ are from issuers seeking accreditation from CRYPSA or at least a quote than can be used as a comfort statement.
The market potential for consulting to issuers and high-rolling investors is very alluring. Figuring that we could certify gems and advise the dogs (help them to create a more legitimate token), we put together a business plan to address a massive new consulting opportunity. But guess what?
… They are ALL dogs! That’s right! ICOs are scams. They are not the same as ‘altcoins’, which is a term more commonly used for open source forks of legitimate cryptocurrency platforms.
Now, the SEC has begun to investigate ICOs and for good reason. Most are thinly veiled scams to fleece widows and orphans by ducking under securities regulations. Others are MLM scams, proprietary mechanisms (in which founders or early partners hold all the cards), or they are simply poor/fake implementations of Blockchain services.
How to spot an ICO scam (Hint: They are almost all scams!)
What fraction of ICOs are scams? More than 97% according CRYPSA. To preserve our reputation, we have suspended a high profit project to endorse the hidden gems. Despite scores of applicants, we simply cannot find any worthy of accreditation, with the exception of a few Bitcoin forks. But, these forks are altcoins, and not really ICOs.
Nearly all ICOs that we analyzed fall into one of these categories…
So, what are the signs that an ICO is a scam? Is there anything you can do—short of hiring an expert—to evaluate each new proposal that comes along?
We don’t advise or recommend holding such risky tokens—but for those attracted to the siren call of ICOs, here are six common tale tell signs that you are dealing with a scam:
Are you like me?
Because most initial coin offerings exhibit these traits, I pass on opportunities to consult or present at organizations and conferences that cozy up to ICOs. This decision limits my participation at many crypto venues, but my conscience is clean and my Bitcoin future is secure.
Resist the siren call and keep your wits about you. You, too, can also avoid the illusory trap of ICOs. Run, hide or just ignore them. “These are not the coins that you are looking for.” (with apologies to Obi-Wan Kenobi and Alec Guinness).
* Related:
Philip Raymond chairs CRYPSA, publishes A Wild Duck and hosts the New York Bitcoin Event. He was featuerd at cryptocurrency conferences in Dubai, South Africa and India. Click Here to inquire about a presentation.
Elon Musk has revealed his personal cryptocurrency holdings.
The billionaire CEO of SpaceX and Tesla told Twitter followers that he in fact has never purchased cryptocurrency, and only holds a small amount of Bitcoin gifted by a friend.
Not sure. I let @jack know, but it’s still going. I literally own zero cryptocurrency, apart from .25 BTC that a friend sent me many years ago.
Godfrey Bloom is a member of the British Parliament. His in-your-face style of educating and shocking his peers has made him a controversial politician. He has occasionally been escorted out of the assembled parliament because of his rowdy rhetoric.
Consider the video below. Bloom offers a critical, but simple and clear explanation of the Fractional Reserve banking system used in the US and Europe. This gets to the heart of the matter! [continue below video]…
Conclusion (mine, and not Mr. Bloom’s): It is in the interest of governments to use a form of money that they cannot manipulate, print, spend, hide or lend without first earning, taxing or legitimately borrowing — and then balancing the books, openly.
Bitcoin is such a currency. Any country that adopts an open source, permissionless, and completely transparent monetary instrument will demonstrate to citizens and taxpayers that they respect their constituents and that they commit to balance their books like any state, corporation, NGO or household.
Would an ethical government surrender control of its own monetary policy? H*ll, yes! This is how a government avoids rampant inflation and the burden of non-consensual debt to future generations. It is also how a government makes taxation, redistribution and spending transparent and accountable. It is how a government restores trust.
We have been raised with centuries of dogma that teach us to accept inflation, and a constantly escalating public debt. Sometimes, the path forward is not immediately obvious. But history doesn’t lie. When trusted nations with large economies manipulate interest rates, borrow without a lender, or inflate a nation out of a crisis (what the US calls “quantitative easing”), the long term effect is certain to be no different than Argentina, Zimbabwe, Venezuela or Germany between the wars. It is a recipe for disaster. It places every citizen and their future children into debt-bondage.
Moving away from the Gold Standard in the 1970s was a risky maneuver. The risk was not abandoning a precious metal with intrinsic value—but rather it placed the full faith and credit of our economy in the hands of transient politicians, rather than in a capped commodity with certain and immutable properties.
Bitcoin is the new gold. It is capped, transparent, open-source, vetted and without a mechanism for quick or covert manipulation (the US calls this “raising the debt ceiling” and they do it every few months!). We may not move to an economy based on Bitcoin today or tomorrow, but that day is coming. Thankfully, it’s coming!
Philip Raymond co-chairs CRYPSA, publishes A Wild Duck and hosts the New York Bitcoin Event. He was speaker at Cryptocurrency Conferences in Dubai, South Africa and India. Click Here to inquire about a presentation.
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DAYS tokens are to be sort of guarrantee for longevity services effectiveness.
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The first step to rhe most effective healthcare, based on blockchain consensus regarding health span technologies.
Thanks omar fogliadini, ondřej pilný, ben kraus, alex lightman, avi roy, liz parrish, george kyriakos sergei sevriugin edgar kampers kirill zhukov philippe van nedervelde anton dziatkovskii darr aita.
Howdy folks.
I hope you’ll find today’s post as interesting as I do. It’s a bit of brain candy and outlines an exciting vision for the future of digital identities.
Over the last 12 months we’ve invested in incubating a set of ideas for using Blockchain (and other distributed ledger technologies) to create new types of digital identities, identities designed from the ground up to enhance personal privacy, security and control. We’re pretty excited by what we’ve learned and by the new partnerships we’ve formed in the process. Today we’re taking the opportunity to share our thinking and direction with you. This blog is part of a series and follows on Peggy Johnson’s blog post announcing that Microsoft has joined the ID2020 initiative. If you haven’t already Peggy’s post, I would recommend reading it first.
As a group, simple creatures following simple rules can display a surprising amount of complexity, efficiency, and even creativity. Known as swarm intelligence, this trait is found throughout nature, but researchers have recently begun using it to transform various fields such as robotics, data mining, medicine, and blockchains.
Ants, for example, can only perform a limited range of functions, but an ant colony can build bridges, create superhighways of food and information, wage war, and enslave other ant species—all of which are beyond the comprehension of any single ant. Likewise, schools of fish, flocks of birds, beehives, and other species exhibit behavior indicative of planning by a higher intelligence that doesn’t actually exist.
It happens by a process called stigmergy. Simply put, a small change by a group member causes other members to behave differently, leading to a new pattern of behavior.
