To mark the sixth anniversary of the ICO, our CEO Charles Lu was featured by ValueWalk’s Jacob Wolinsky to reflect on the transformation of the industry in the last half decade and where blockchain is headed next:
“The ICO emerged as an innovative and subversive way to raise funding for the new phenomenon of decentralized networks,” Charles explains. “They offered a way to jumpstart development of a public shared resource and initialize a diverse global pool of stakeholders. ICOs were also dramatically different from traditional funding methods, which are often associated with high costs, siloed investor pools, illiquidity, and financial exclusion.”
Despite their crucial role in bootstrapping fruitful systems such as Ethereum, the shortcomings were impossible to ignore. ICOs were often structured in ways where the incentives of teams and investors were misaligned. Many were also found to be violating local securities laws. The resulting lack of accountability and rampant speculation led to the failure of a large number of 2017 and 2018 ICO projects.
Consequently, we have seen the decentralized funding model evolve in recent years. As Charles remarks:
“Regulation around blockchain is steadily gaining clarity around the world, and innovations like security token offerings (STOs) are emerging. Because many traditional financial services are inefficient, expensive, and inaccessible, we predict that finance will continue to improve through democratization, interoperability, and automated compliance. Though the rampant speculation of 2017 led to many failings, ICOs have a very important place in the history of financial democracy, and financial services will continue to evolve in the direction of transparency, accessibility, and compliance.”
Charles was working on his doctorate degree in cryptography and blockchain protocols at Stanford University before dropping out to focus on Findora. To read the full story, follow the link below.
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