Jordan
Belfort has branded Initial Coin Offerings (ICOs) the 'biggest scam
ever'. Cryptocurrency expert and founder of London firm CommerceBlock
disagrees and says the old guard of banking and finance are running
scared.
Nicholas Gregory, founder and CEO of cryptocurrency enabler CommerceBlock, said:
"The
old guard are being cut out by ICOs which means the banks, VCs and lawyers are
losing billions. No wonder they're upset.
"It's
wrong to ban them because an ICO is just a way of crowdfunding investment for
technology firms who choose to do it in cryptocurrency because that is their
field.
"In
the old days - up to a year ago - you would go to a VC and they would decide
whether to invest in your company and you would have to follow their rules.
ICOs make it easier for companies to raise funds from more sources and free
themselves from the straitjacket of VC interference.
"Are
there scams? Of course. But there are scams in every financial system from
penny stocks to fraudulent gambling sites.
"It's
too easy for critics to point the finger of blame at the technology and not the
criminals who exploit every loophole in every kind of commercial
environment.
"Investors
take a risk by buying into ICOs just as they do buying equities, even though they
are not securities. But they are offered far greater transparency. There is
more they can vet with ICOs because you can look at the source code of the firm
you are funding. You can download the product and play with it. In the stock
market all you get is a brochure.
"This
is why it's more transparent and that's why VCs hate it. The VC model is all
about the 1%. Only a multi-millionaire could invest in Facebook in 2009. With
the ICO model, if you and I spot the next Facebook we can get in on
it."
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