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RE: Does Blockchain Pose a Threat to Banks?
@wavesplatform I think you bring up a good point about ICOs issuing tokens/coins without a clear need. Like those ICOs where that is not needed, traditional finance is all about creating financial products to usher in economic prosperity for the retail buyers. In reality, it just makes the issuer massive amounts of money and leaves the "bagholders" to the whim of the markets.
I would like to think that the traditional finance sector would behave differently, but I doubt it.
I couldn't agree more with this comment. In the past tech companies would have to convince angel investors, VC's or boostrap their idea and first show a MVP before they could consider getting outside money but with these ICOs these guys dont even have a product just an idea and they're getting insane amounts of funding.
Not every idea is a great idea, not every idea has the right market conditions, not every idea is for that region or for that time and it can and most likely will fall flat. Even with millions of dollars raised, even if its a legitimate company having to scale quickly and the need for top talent means you have a high burn rate and could quickly run out of runway before you even ship a product to market which is what i feel will happen to plenty of the legitimate non scammy ICOs that thing this is a good route to go for