ICO (initial coin offerings), is basically another means of crowdfunding that people are already looking into as cryptocurrencies are slowly becoming more popular, it’s also unregulated. It’s what people trading with cryptocurrencies are aiming to be successful in the coming years. But there are things that people are cautious about, for the reason that it’s unregulated.
While people who plans to invest in ICO are given the details on where their investments are going, the fact that its unregulated by a certain body like the SEC (security and exchange commission), it has a high probability rate of being fraudulent, this is the reason why many people are pushing for it to self regulate. While there are certain trust issues that stem in ICO for now, there’s no denying that many people are using it to fund their business and for investors to invest in things that they want.
Why is there a need to self regulate: As much as the aim is pure with ICO and its generally to help with investors and companies that wanted profit and growth, the fact is that because there are no official or legal guidelines that control an ICO, it’s a risk on its own that can put companies and investors alike at risks. Governing bodies can provide control, safety and order in ICO which will be beneficial to the security of its future.
Aside from the lessening the risks what are the other factors people can benefit from self-regulation? What do you get out of it? Trust really, more investors, more companies that would back up ICO, more people that wants to go to the platform. While there are many people now that are on ICO, the fact is that not all businesses and investors are open with the risks that it provides. Some people are just very cautious that anything that will put their investments at risks is not something that they would consider on.
Other benefits? The last thing is growth, if people have more trust with ICO, people will invest in it and so does everybody else. If people see that there is a stable platform that they can invest in, they wouldn’t mind putting their money out there just like any crowdfunding projects that are not ICO driven. The fact is that there is a competition out there and ICO is the new player, if they cant find a way to provide security and safety to their clients and investors it will just be another option and not “the option” and given that people are slowly rooting for cryptocurrency, it won’t be that hard to make it a good platform in a not so distant future.
ICO is this new option of crowdfunding, but because of the fact that it’s not regulated leaves a bitter taste to some people. In fact, some investors see it as the only thing that is hindering its success. The world has already gone past the “getting to know” about cryptocurrencies and bitcoin is no longer just the currency that people are trading in, this s the reason why many people are pushing for self-regulation in the ICO because it has a ton of opportunities and the only thing that hinders its growth is its regulation issues and Mark Curry actually mentioned this in his recent post, read more about it by clicking the hyperlink.