Vitalik Buterin: 90% of token startups will fall
CryptoBit News Today1 min read
Vitalik Buterin, the founder of Ethereum, has long been skeptical about initial coin offerings (ICOs), where companies issue digital tokens to attract investment. These tokens' prices are solely based on the desire of people to have them, a point he emphasized at the ETHWaterloo hackathon, focused on Ethereum's structure.
Tokens 2.0 on the Horizon
Buterin believes that 90% of current ICO projects, even those adhering to the trusted ERC20 standard and listed on Coinmarketcap, will eventually crash. He sees the current token landscape as merely a first practical implementation, with "tokens 2.0" emerging between 2018 and 2019 to improve upon existing models. The current hype around token projects is doomed to fall, and after that, the market will better understand which projects merit investment.
The ICO rating system is one of the most serious market problems, according to Buterin. However, he remains confident that the market will mature over time.
Ethereum Development Takes Priority
Buterin was previously displeased by news that independent Ethereum upgrade developers had launched an ICO. Stressing that this was not what he wants to see for Ethereum's development, Buterin swiftly established a private fund to invest in decent Ethereum development projects.
