Crypto-currency trading is not illegal. It is not a gambling. Many advanced countries decide to use digital currencies to pay employees. Zug is the example. However, in 2017, the picture was not promising. Though ICOs increased the flow of investment, the failure is not hidden. Top ICOs have earned over $100 million. China has banned top notch ICOs. South Korea imitated Beijing in this connection. Then will all ICOs be blocked or removed.
What is ICO on Block-chain?
See, prior to analyze the roles of ICO, it is better to define this particular abbreviated term. Initial Coin Offering is the place for investors to have financial aid to run the business of crypto currencies. It is a crowd funding center to gather financial support for helping financers to start business. In return, traders have to submit their project models, and budget to take care of the small size crypto currency exchange. Investors buy tokens to have more bitcoins and Ethereum currencies to trade.
In 2011, the mishap happened when the block chain had to face recession with the downfall in arranging fund for spoon feeding digital currency trading industry. Token Data reported that around 147 bitcoin projects failed to get success in earning money by pre-selling bitcoins. There is more to show. 46 percent projects have been deactivated. 113 futuristic projects were thrown before implementation. Investors withdrew their names after investing some fund. These semi-successful projects were then switched off or nullified. $233 million has been squandered to fuel up hopeless projects to promote crypto currencies.
Loss of Popularity
Crypto currencies are regulated through computers .It has digitized configuration. The transactions take place through block chains. The value of a single bitcoin is 100 times higher than the regular currency. The risks of stealing digital currencies are zero as one can’t touch or carry digital coins. It is stored online and a user has to use individual key to do the transaction via public consensus algorithm system.
A complicated mathematical calculation should be done to unlock the database. However, controversial remarks and negative feedbacks from rich nations in Europe have forced financers to opt for different routes to utilize financial resources. What will happen in near future? Critics suspect that maybe, crypto currencies will disappear giving the place to regular currencies mining.
ICO Doesn’t Score Well
Grundfest, Stanford Law professor, has predicted that the future of ICO is remarkably bad. It is because of the loss of enthusiasm of elite society. Especially, financers who are not computer literate or incapable of handling nodes due to inexperience are not satisfied. They don’t understand the ethics of ICO. The security issue is another concern for them. They suspect that someone will be fast to steal their money by getting all personal details.
Their e-wallet is not protected. The government or any bank is not controlling ICO. Central power is not transferrable to third party. Anyone can open accounts to use block chain. This loophole has caused damage to force people to go back. China declared that crypto currency pollutes moral high ground. It affects the society. Fraudulence in Beijing will not be accelerated any more. Grundfest is happy that new law will not be flexible to regulate these ICOs. It will be a dramatic move to wipe out top 50 ICOs for corruption in handling digital currency trading.
Lack of Infrastructure
Well, there is another point to be brought to people for discussion. People are not competent to operate the nodes. They don’t accept complicated block chain decoding, consensus algorithm mechanism and new terms to deal with different coin mining centers. Common persons should be made literate about the pros and cons of crypto currencies. Before expansion of the online crypto currency trading, there must be better infrastructure with advanced technology to give the awesome support to people. Besides, still digital currency is not used by 80 percent people. It is not popular in Asia and Africa. Owing to lack of propaganda, campaign and training, it is still mysterious to young generation.
ICOs Are Tracked for Preventing Fraudulence
The energy consumption rates are higher to operate nodes. The transactions are not simple. Even in spite of installing hi-tech anti-hacking tools plus cloud computing system, information leakage risk is not overlooked by experts. If the government doesn’t think of decentralizing the ICO, it will be vanished completely. The backlash has had disheartened the newcomers who have a recap of recurrent scams way back to 2017. Few urchins raised fund and then made elopement without any desire to be a good businessman.
Their ill purposes destruct these crowdfunding hubs or ICOs. In the first quarter of 2017, 201 newborn start-up traders collected near around $3 billion through different ICOs. $950 million was crowd-funded in last September alone. So, it was a good opportunity for financers to enter into the crypto currency business. On 21st August last year, Swiscoin project was tracked for pilferage and unfair trading. Ukraine administration closed this productive project as it was not legal. Fraudulent hackers were believed to embezzle over $ 500,000.
If China, South Korea, Japan and America ban crypto currency, it will be a long lasting deadlock without breathable air to inhale. The government should restrict the usage of crypto currencies to suppress crime. The proper power investment and enforcement of new low to prevent corruption can rebuild all ICOs in near future.