Topic: [2017-10-26] Vitalik Buterin: 90% of token startups will fall - page 3. (Read 4039 times)

ICO's will fail not because ERC20 is bad, the problem is not the tokens themselves but the networks that they represent. Most of them are not able to deliver their promises for many reasons, like lack of skill, unrealistic goals or just being plain scams - and the situation is quite similar with real world startups. So, this suggested token 2.0 system might not necessarily solve the problems with current ICO's. What is really needed is community effort for filtering obviously bad projects on early stage, so investors will have to spend less time looking for good projects. Also, ICO's are in bubble because people are speculating on them - they are not buying tokens because they believe in projects, they buy them to sell a few weeks later after expected pump.

I think that Vitalik's 90% is a conservative estimate. I put it at 99%.

90% of the ICOs are failures from the start or outright scams, and 90% of the rest will never go anywhere.

As always Vit is right. Fortunately most of the ico`s will not bring real value to their investors. It is very difficult today to weed out the good from the fade, but we must do our own due diligence, nobody will care about your money, only you.

ERC20 tokens "2.0" means that people will have better tools, convincing more people to join on their ICOs and collect more money because of the new

Features, no one has the ability to change this game of coins because every one is their own authority in a decentralized network. they will eventually

Run out of fuel, if a project has a roadmap to reach a goal in a predetermined date and it fails to deliver, they will be considered failure and will crash.

Eth will not remain the #1 for ICOs, others will take it's place mate. his currency is not really his, make a wrong move to see what happens.

Indeed. I can't understand why people are putting money on ICOs and then cry later on that they have been scammed. Experienced tells that most of the ICOs out there did not add value but instead just copy one another. How can you put your money if those projects are like that? Mr. Vitalik does make sense. I think he has seen enough of ICOs that he can safely concluded that almost all of them will fall. Good job Vitalik for giving us a fair warning.

I am agree with you. All those projects just like a trash around us and it is really hard to find a good one. I believe there are perspective projects and it will appear many new one, but the biggest number of ICO are really just scam or simply not successful startups. Mr. Buterin didn't say us something new indeed.

Does not take a genius to get that. I don't even know why are people still investing in ICOs. I get that It may be profitable when it hit exchange (for 15 minutes until it crash) but its a scam long term.

I don't need any Buterin to say that the biggest Proventil of ICOs will never have success and the biggest percent was created for one reason - to take money from people and to close. I'm not surprised about China's banning of ICOs, I suppose that those unsuccessful end of ICOs was the exactly reason of why they took such decision.

Four out of five startups fail.
If we're talking about the market maturing to a point where people judge well what to invest in then I think we are aspiring to similar to the 20%.
I believe in cryptocurrency and ICO as a mechanism but based on that I think 90 is way too generous at this point.

He's right in a way. The number of people willing to invest in ICOs is limited, which means the money is limited. There's so many ICOs coming up within a short period it's overwhelming when compared to the general interest in cryptocurrencies.
After some gov statements about ICOs and the issued bans people are weary and will choose established coins instead of new ones. I bet most of them will fail. They can be listed and they can be traded, but the amount of users will be insignificant.

I doubt that Buterin has ever had that much faith in cryptocurrencies in general, never mind in the exact things that he's doing.  It's just a bit of an experiment which also brings an interesting method of fundraising and interesting future prospects.

It's surprising that he's stepping in to be the voice of reason during this general ICO bubble, considering that he stands to hugely financially benefit from having loads of ETH.

Perhaps that could even suggest that he expects the ETH price to become higher once the majority of projects are legitimate.

I participated in many signature campaigns and can confirm that the prices for most of the coins created as a result of ICO immediately fall much as soon as they enter the exchange and start bargaining there. However, it is encouraging that in 2018-2019 a second version of the original coins will be created, which will be much better than now. Perhaps ICO will not be so much, but they will differ in functionality and quality. The news from Vitalik Buterina is encouraging.

The founder of the second most popular cryptocurrency in the world has always been skeptical about initial coin offerings, or when companies issue digital tokens to attract investment. Those digital tokens’ price is based only on the desire of people to have them, Mr. Buterin noted on the ETHWaterloo hackathon, dedicated, as one can guess from the title, to the structure of Ethereum.

As Vitalik Buterin believes, 90% of current ICO projects, even based on trusted ERC20 standard and even those listed on Coinmarketcap, will eventually crash. What we see right now is only the first version or first practical implementation of tokens, and “tokens 2.0” that will emerge somewhere between 2018 and 2019 will be much better. The hype around current token projects is doomed to fall, and after that, Buterin thinks, we all will finally understand which projects are worth investing and which are not. The ICO rating system is, indeed, one of the most serious problems the market is currently facing. But the market will mature, Ethereum founder assures.

Previously, when it became known to Buterin that independent Ethereum upgrade developers had launched an ICO, he immediately told this is not what he wants to see with his currency development and swiftly established a private fund that invests in decent Ethereum development projects.

Read more