Recently, Brad Garlinghouse, Ripple chief executive officer, and Joseph Lubin, Ethereum co-founder have criticized the present state of ICO industry.
Regulators need to catch up with ICO industry: Brad Gralinghouse
Gralinghouse, belief that “a lot of what’s happening in the ICO market is actually fraud”. There is an increase in the number of ICOs facing litigation. Since, he expects that fraudulent activity will “stop” when regulators catch up with the industry.
He adds that token issuers operate in a legal “gray area” wherein they wait for regulators to catch up with the industry. The Ripple CEO suggestively that the futures markets may prove to be analogous. Since, it took efficient time to develop a regulatory framework for the futures markets.
“There are a lot of really fabulous things that get with digital assets and blockchain technologies to reduce friction. To reduce costs and enable things that weren’t possible before. I think instead of focusing on those, distracts by what’s going on in this gray area”.
China’s ICO ban as an “Appropriate Approach”: Joseph Lubin
Ethereum’s co-founder Joseph Lubin said that though ICOs are being by many high-quality projects still there been a lot of copycat projects. Since they copy all the same materials and don’t tend to deliver any value to the people buying tokens.
He proclaims that most of the copycat projects were in China which leads him to support China’s decision to ban token sales.
“With China’s political approach to things, and with the fraud that was rampant there, it made a lot of sense for them to pause things a little bit and get a better, deeper understanding of the ecosystem, and scare potential fraud perpetrators”.