Initial Coin Offering (ICO) has multiplied in numbers and value over the recent year, which has caught the attention of all the financial regulators who are spread across the globe. In simple words, ICO, also called as a token generating event, sells digital tokens in place of regular money that we have been using over the years. If you are looking for more info on this, then you are at the right place. There has been a lot of objections to the introduction of crypto capital, and if you are not aware of this, then https://bitcoinmagazine.com/articles/cryptocurrency-regulation-2018-where-world-stands-right-now/ can throw some light on you.
When ICO was initially introduced, it was only had a small group of investors who had a focus on the blockchain ecosystem. Most of these initial investors made a lot of money by investing in cryptocurrencies like Bitcoin which gave them more profits even though they did not do much work for it. The shift now in the market, where people have raised objections is due to the parallel network that it will run with that of real currencies which are dealt by banks. Most financial analysts in the world see cryptocurrencies as just a get-rich-quick scheme which could eventually turn out to be a scam.
As more and more companies are moving into this style of using digital currency instead of real money, it has become mandatory that it is regulated, primarily because it is extending into different countries that are located at extreme parts of the globe. Out of all the nations, South Korea and China have taken the most robust stance against cryptocurrency by banning it from performing any token fundraising.
Even though countries like Hong Kong, Russia, Canada, Singapore, UK and the US have taken a much adjustable stand when it comes to digital currencies, most of the other countries have turned down the use of such money. There has been a lot of speculation about the dangerous and the high volatility that may be possible in digital currencies as there is no proper regulatory or compliance that has to be rendered to.
What The Future Holds:
If you are one of those was wondering if cryptocurrencies are here to stay, then you are not alone. This is the same doubt that lingers in the mind of millions of people who are skeptical about investing in the scheme. There is a complete belief that less relevant projects could merely disappear whereas the primary attention will be given to core technology projects most of which are tied to the blockchain. Also, analysts feel that if it is considered as the future of financing, then more and more banks should be moving into this type of currency for transactions. Since that is not the case, there is still a lot of doubt about the future of cryptocurrency.
If you are looking to invest in cryptocurrencies, you need to be aware of both the pluses and minuses that may occur by stepping into this new and emerging investment game.Top