Are ICOs a scam?
During our journey here at TokenAI, we have the opportunity to talk to many people about our vision and about the future of cryptocurrency. Many people immediately identify with what we’re doing and get onboard, but there are also the skeptics, who say things like:
“I don’t understand this ICO market, how do these companies get such a high valuation?” or “This can’t be realistic, companies like this shouldn’t have so much money, this is all a scam”.
While I understand where these people are coming from, I would like to address these comments and share my thoughts on what’s really going on.
I lived through the dotcom boom and bust in the late 1990’s, it was a time of great euphoria, a “new economy” where clicks were worth more than profits, and anyone could raise funds for whatever crazy idea they had. It seemed like it would never end until it did, with a crash.
Many of us remember some of these companies and their wacky super bowl ads, and how fast they disappeared from the world. Lots of this is very similar to what we’re seeing now with ICOs, many different ideas, some with nothing but a whitepaper (and some even without that) raising incredible amounts of money.
But what is sometimes forgotten is that from the dotcom era, emerged companies like amazon.com, Google, Priceline, eBay and many other household names that now rule the tech world.
Now we all know that blockchain technology is already transforming the world and is highly likely to transform money, transactions and the entire financial industry, and if you don’t believe me, just look at the giant financial institutions and tech companies that are investing massive amounts of money in blockchain tech.
https://www.coindesk.com/nasdaqs-blockchain-services-global-exchange/
https://www.coindesk.com/no-fraud-ex-jpmorgan-trader-masters-thinks-bitcoin-breakout-just-beginning/
https://www.ibm.com/blockchain/
and you can google the rest.
Now, if I were to tell you in 1990 that there will be over 1000 dot coms. Most of them will fail, but 10 of them will become the biggest companies in the world in 20 years. What would you do? Would you call this a “scam” or a huge opportunity?
Would you wait on the sidelines and watch or maybe put a little bit of money in each of these companies just in case they breakout?
This is where we are today. We have a brand new infrastructure, with many new opportunities, and 1000+ companies that are developing on this infrastructure.
Many will fail, probably most of them, but companies with solid tech, a solid team and great product could become the next Amazon or Google.
This is why we have these high valuations, a few of these companies are going to be the tech leaders 20 years from now, I think that’s a big deal that deserves to be highly valued, don’t you?
If you’d like to learn more about how AI and the Blockchain can be used to create a decentralized crypto platform visit www.tokenai.io.
