Vitalik Buterin, the founder of the Ethereum, does not particularly believe in most ERC20-based tokens. In fact, he believes that almost all of them will disappear and sooner rather than later. But in general, Buterin is confident that the crypto currency is a bright future, as investors and developers are learning on "tokens 1.0". "This, in fact, tokens 1.0". Speaking at ETHWaterloo, the 23-year-old founder of the Ethereum reminded everyone that 90% of startups fail. Similar can be said about the tokens of the ERC20 standard. According to Buterin, 90% of the coins, which are now listed on CoinMarketCap, will soon depreciate.
This remark is quite actual. Today, billions of dollars are being invested in ICO - a new, but controversial crowdaming model that allows start-ups to raise funds by creating their own crypto currency or tokens. It is estimated that at least $ 2.3 billion has already settled in the ICO industry in the first nine months of this year, overshadowing traditional financing methods such as venture capital.
This did not escape the regulators' attention, which led to their attempts to take the industry under control. However, this was not so simple as it looked at first glance: some countries could not quickly develop regulatory rules and decided to simply ban the ICO.
Despite the fact that Japan has become the epicenter of the crypto-currency trade, thanks to the very favorable attitude of the regulators to it, it is unlikely that this will play into the hands of the ICO industry in the country. According to one of the famous Japanese entrepreneurs, the regulation of the primary placements of tokens in Japan is only a matter of time.
A light in the end of a tunnel
Of course, do not expect from Bouterins pessimistic forecasts about the future of the ICO. Although, in his opinion, tokens 1.0 expect a sad end, but the next wave of crypto currency will be much better. He calls these coins "tokens 2.0". This era, which is much closer than we all think, will be filled with developers creating crypto-currencies of much higher quality.
In the meantime, the industry will have to work hard to improve its image. As Buterin says, "there are some good ideas, there are so many bad ideas, and there are a lot of very, very bad ideas, as well as many scammers."
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