In recent remarks made on social media, Bram Cohen, the founder of BitTorrent held back on castigating the ICO crowdfunding model itself, suggested industry writers specifically ought to not include trust when rating an investment opportunity.
“As a journalist you shouldn’t give any ICO the benefit of the doubt that they’re a ‘good project,’” he wrote on Twitter. Cohen is of the view that all ICOs should be treated as scams until it becomes very clearly that they are really genuine.
His remarks echo those of Bobby Lee, CEO of Chinese cryptocurrency trade BTCC, who this week portrayed ICOs as being “95% database projects.”
Cohen’s remarks mirrors similar conversations within the crypto world where both Bitcoin experts and developers are increasingly voicing their criticism of Blockchain projects that are for the most part ‘open-ended’ with no decentralization mechanisms in place.
While not stating what verification mechanisms need to be in place to be able to qualify an ICO as trustworthy or not, Cohen nonetheless is using ineptitude as grounds for labeling many ventures as “scams.”
“Incompetents raising money to do things they are incapable of doing are scam artists,” he added.
Cohen’s tweet included a post from Zcash colleague Zooko, who thusly had connected to an article in the New York Times about the current troubles behind Swiss company Envion, which attracted $100 million investments from its ICO.
To some degree amusingly, Zooko himself had also recently gotten feedback over being too effectively trusting in the wake of distributing subtle elements of a discussion he held with Bitmain CEO Jihan Wu.
Wu, whom many cryptocurrency identities have blamed for lying over different parts of Bitmain and his thought processes, left a positive impact on Zooko, who composed that he “sounded true” in spite of his own questions. Responses consequently appeared to scrutinize Zooko’s position.
In the mean time, ICO provision is set to remain an intriguing issue this month as EOS’ record-breaking year-long event closes Saturday having raised over $4 billion without a working item.
Tezos, which brought $232 million up in 2017, is also set to dispatch a beta release this month.