There have been concerns raised by sections of the community about the conducts of some Initial Coin Offering (ICO) projects and how they are run. In fact, the United States’ Securities and Exchange Commission (SEC) has had to come down on some of these projects in recent times.
Notable amongst them are REcoin and DRC World whose founder Maksim Zaslavskiy was exposed by SEC has having made fraudulent claims in his project description about Real Estates and Diamonds which were non-existent.
In truth, the number of successful ICO projects far outweighs the faulty ones, but it seems the adage “one bad nut spoils the bunch” has been playing out prominently. These few bad nuts are threatening to give ICOs a bad name thereby stealing the shine from successful and promising projects in the space.
Some sections of the market have been suggesting the need for some form of regulation on the back of activities of projects such as Zaslavskiy’s REcoin and the likes. This is coming on the back of moves and “rumored moves” by certain countries having a crackdown on ICO projects.
But another section believes that the concept of decentralization on which blockchain technology derives its strength and attractiveness will be defeated if regulations are introduced into space. They also hold the view that such a move will increasingly sideline and marginalize smaller enterprises who will be muscled out by large corporations and ultimately defeat the vision the pioneers of blockchain tech had in creating this phenomenal organism. They are of the belief that regulation will unlevel the playing field and likely kill the dreams of promising entrepreneurs.
They have instead called for the institution of a ‘Due Diligence’ framework. They believe that a set of guides to educate would-be investors is a better option that will inure to the benefit of all and sundry and keep the dream of disruptive tech alive.
This will mean that a potential investor will have to painstakingly go through projects and their white papers as well as other accompanying particulars, ask critical questions and confer with members of the community. It is believed that people should make time to put some efforts into scrutiny before throwing their hard earned resources at projects or else they might have to learn the hard way. Setting aside some few hours to peruse a project might in fact be a better tool than what regulations might have to offer.