Charles Hoskinson, Co-founder of Ethereum, said in a Bloomberg interview on Wednesday, it’s time for the Crypto coin market to cool down in a big way.
“People say ICOs are great for ethereum because, look at the price, but it’s a ticking time-bomb.”
“There’s an over-tokenization of things as companies are issuing tokens when the same tasks can be achieved with existing blockchains. People are blinded by fast and easy money.”
Initial coin offerings (ICOs), a means of crowd funding for blockchain-technology companies.
Bloomberg reports, “Firms have raised $1.3 billion this year in digital coin sales, surpassing venture capital funding of blockchain companies and up more than six-fold from the total raised last year, according to Autonomous Research.”
“Ether, the digital currency linked to the Ethereum blockchain, surged from around $8 after its ICO at the start of the year to just under $400 last month. It’s since dropped by about 50 percent,” Bloomberg added.
Also read: ECB’s Nowotny warns against accepting bitcoin as an official payment method
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