In a recent interview, Ripple CEO Brad Garlinghouse and Ethereum co-founder Joseph Lubin criticized the current state of the ICO industry. The couple expressed concern that while many “high-end projects” use ICOs as a fundraising vehicle, numerous “mock projects” have raised money with no “intention of offering any value to the people who buy the funds token”
Ripple’s CEO Believes That Regulators Need to Catch up With the ICOs Industry
Ripple CEO Brad Garlinghouse expressed his belief that “much of what is happening in the ICO market is actually fraud,” and also mentioned the growing number of ICOs facing litigation. Though concerned about the actions of many token sales, Garlinghouse expects such fraudulent activity to “stop” once regulators catch up with the industry.
Garlinghouse also said token issuers currently operate in a legal “gray zone” waiting for regulators to catch up with the industry. Ripple’s CEO has suggested that futures markets may turn out to be similar as it has taken a long time to develop a regulatory framework for futures markets.
Ethereum’s Joseph Lubin Has Described China’s ICO Ban as An “Appropriate Approach”
Joseph Lubin said that although ICOs are made through many “high quality projects, … there have been many copycat projects where people copy the same materials (and) don’t intend to offer them any value. token. “. “Mr. Lubin claims that many of these” copy projects “were based in China, which led him to support China’s decision to ban the sale of tokens within its borders.
“With China’s political focus on things and the fraud reigning there, it made perfect sense for them to stop a bit and gain a better and deeper understanding of the ecosystem and scare off potential fraudsters,” Lubin said. . he said.