[0218] Vertex: Raising Standards for ICO's to Reduce Fraud
Today, we're going to talk about the darker side of crypto.
Scams. Rip offs. ICO cash grabs.
Yesterday, while listening to a podcast, I heard an alarming stat regarding ICO's in 2017.
Apparently, 1,000 ICO's launched in 2017 have gone bust in 2018. Despite harvesting millions of dollars from people like you and me with nothing more than a promise in a white paper, there are more than one thousand dead projects from last year alone.
That is mind boggling.
Question. How can you go bust in less than a year when you've made $10M or $50M at ICO?
That would indicate either fraud or in the least, no business skills or dedication to building an actual product. It also indicates an exploitation of 'the crypto gold boom' and a giant cash grab.
Even though I know zero about code development, I can guarantee you that even I have enough business savvy to hire a good team and lead a crypto project beyond the 12 month mark. Are the bright and talented crypto entrepreneurs that inept?
I know that many startups fail... But this is something else.
Good thing there is no regulation for crypto because it would mean jail time for some of the parties involved as in traditional markets. But, we are in the days before consumer protections so this stuff will happen.
Trend Forecast: Policing of Crypto
As a response to the very real issues in the crypto space and the millions of dollars flying around the place with no real legal oversight, new services are popping up to cater to the market demand for consumer protection.
As we are in the days before regulation and a proper legal integration of cryptocurrency, 3rd party services with consumer protections in mind are beginning to emerge.
Given the lawlessness and the *lack of intelligent discussion ( *due to the 'anti-regulation' mentality of the crypto community ), it means there is a big gap in the market. Just waiting to be serviced.
Given the amount of money at stake, there is a big market for 'crypto security companies'. Just like when anti-virus software was a goldmine in the early days of the internet, similar protection services will cater to the demand caused by a lack of legal oversight.
Don't say there isn't money in #CryptoSecurity either. CoinBase are about to launch their new premium service that costs a mere $100k set up fee + 3 BTC/month ( if I read the paper correctly ) to store your coins.
That's for the high rollers. But what about the rest of us?
Vertex
Mark my words, 3rd party security services will be decent percentage of the overall crypto market. From next gen cold wallets from the #Ecomi secure wallet... to services like #Vertex which will only list ICO's that they have been professionally vetted for authenticity and market potential.
Vertex is an interesting idea. I have a lot of respect for any project looking to establish higher #Standards.
From what I gather from their service is that they are providing a carefully selected list of ICO's to invest in. In other words, they have stripped out the garbage and will present the ones they think offer the best return on investment.
All researched by a team of top investors, according to their material.
Basically, Vertex are offering to do some of your homework for you with a carefully managed portfolio to choose from. Selected by a team of investors.
Companies like Vertex signal to me that the crypto / ICO market is changing. The rules are changing to favour the consumer.
One of the criteria Vertex require for promotion on their platform is a minimum of #TestNet. Which eliminates a lot of unviable ( or, scammy ) projects.
This is a good thing because quite frankly the crypto space does need a good clean up. The fraud, obvious insider trading and other shenanigans going on is having an adverse affect on the 'free market' and growth of crypto. A free market is one thing, but a fraudulent one that takes money from amateur investors is another.
Website - https://vertex.market
Whitepaper - https://vertex.market/static/whitepaper/vertex_whitepaper.pdf
Thanks for watching,
Brendan Rohan - Indie developer of 'next gen' natural medicine from Melbourne, Australia
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DISCLAIMER: This article and all information on this channel & all content is offered purely for educational & entertainment purposes. Always do your own research when investing money and seek the help of a registered financial advisor.