INSUBCONTINENT EXCLUSIVE:
Two sites that are actively cataloging failed crypto projects, Coinopsy and DeadCoins, have found that over a 1,000 projects have failed so
The projects range from true abandonware to outright scams, and include BRIG, a scam by two “brothers,” Jack and Jay Brig, and Titanium,
a project that ended in an SEC investigation.Obviously any new set of institutions must create their own sets of rules and that is exactly
what is happening in the blockchain world
But when faced with the potential for massive token fundraising, bigger problems arise
While everyone expects startups to fail, the sheer amount of cash flooding these projects is a big problem
When a startup has too much fuel too quickly the resulting conflagration ends up consuming both the company and the founders, and there is
little help for the investors.These conflagrations happen everywhere and are a global phenomenon
Scam and dead ICOs raised $1 billion in 2017 with 297 questionable startups in the mix.There are dubious organizations dedicated to
“repairing” broken ICOs, including CoinJanitor from Cape Town, but the fly-by-night nature of many of these organizations does not bode
well for the industry.ICO-funded startups currently use multi-level marketing tactics to build their business
Instead they should take a page from the the Kickstarter and Indiegogo framework
These crowd-funding platforms have made trust an art
By creating collateral that defines the team, the project, the risks and the future of the idea, you can easily build businesses even
Unfortunately, the lock-ups and pricing scams the current ICO market uses to incite greed rather than rational thinking are hurting the
industry more than helping.The bottom line Invest only what you can afford to lose and expect any token you invest in to fail
Ultimately, the best you can hope for is to be pleasantly surprised when it doesn’t
Otherwise, you’re in for a world of disappointment.
