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Wikipedia Founder Jimmy Wales Slams ICOs........It is an ‘absolute scam’.

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INITIAL COIN OFFERINGS has taken the business and computing world by storm.  What started as a startup fundraising strategy for FINTECH companies has been extended to other sectors of the business world like Hotel, Leisure and Travel among other areas.

The success of many an ICOs means that the initiative made things to happen. So, the ICO boom started on a good note across the cryptocurrency world, raising billions of dollars for promoters hoping to join the revolutionary Blockchain technology.

Fireinthebone gathered that it is the unregulated nature of ICO fund raising that has attracted both criticism and rejection  from different quarters, government, bankers and influential people. One of such notable personality is the founder of Wikipedia, Jimmy Wales’ who thinks the whole setup is an ‘absolute scam’.

According to Wales, blockchain is interesting, but ICOs are scams.  "I think Blockchain is a super interesting technology, but there are a lot of fads going on right now ... There are a lot of these initial coin offerings which are in my opinion are absolute scams, and people should be very wary of things that are going on in that area," Wales said.

This year, start-ups have raised $2.4 bln from ICOs, according to data website Coindschedule.com. In a similar manner to crowdfunding, ICOs involve many different investors buying into the tokenized digital currency that comes from different Blockchains created by start ups.

The hype in the crypto currency market and massive adoption of Bitcoin was all that the promoters needed to galvanize acceptance from the public around the world and the rest is story- the incredible impact they have made in the world of startup fund raising. 

ICOs are still mostly unregulated and operate without much rule or law. However, that is slowly, but dramatically, changing; China has put the biggest steps in to controlling ICOs, with Korea and the USA joining in with similar hard-nosed approaches.

Blockchain will hang around - It seems that Wales’ take on the burgeoning cryptocurrency ecosystem that is developing is similar to a lot of other big name investors and thinkers; he is a fan of Blockchain technology.

Wales added that he believes that “Blockchain technology will be with us for some time to come.” There is a lot of promise away from just digital money when it comes to Blockchain technology, however, it is a double-edged sword.


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