$150 million flaw? Could Bancor suffer the fate of TheDAO?

Initial Coin Offering(ICO), the Blockchain based funding model which is more of a hybrid of the traditional IPO and crowdfunding has enjoyed unparalleled success over the years reaching a record high this year.

In just the first half of 2017, we have seen almost half a billion dollars raised through ICOs. This trend seems to have no ends as the success of one ICO further inspires the creation of another. The Tezos ICO which is still live and has already blazed past $200 million in investments and is poised to become the largest ICO ever.

Among the top performing ICOs is Bancor protocol, an Ethereum based project backed by billionaire investor Tim Darper. The involvement of the investor helped Bancor protocol raised over $150 million in just 3 hours of its ICO to become one of the largest ever fundraiser in the history of both ICO and crowdfounding.

Bancor is a Etherum based smart token management platform hoping to decentralized the creation and exchange of smart tokens with support for exciting crypto-currencies. Bancor hopes to become a decentralized ShapeShift and Waves.

While most people in the Blockchain circles are happy about the huge success of the Bancor ICO, there are some who are skeptical and believe it is doomed to fail just like TheDAO. Two prominent Blockchain insiders,  Andreas Antonopoulos and Joey Krug(co-founder of Augur) have warned that Bancor is due to suffer the fate of TheDAO.

Early Bitcoin developer Charlie Shrem, COO of the Jaxx crypto-currency wallet as well as Emin Gun Sirer, professor at Cornell have also expressed concerns over the safety and feasibility of the Bancor protocol.

Some of the reasons cited by critics of Bancor include:

• the Bancor code is badly written and would harbor several bugs
• the Bancor code is probably too minimal - $150 million for just 40 lines of code!
• the Bancor protocol code is untested and has not been proven to work
• there is no need for a separate Bancor token since its built on Etheurem, with transactions and reserves to be in Ether
• a previous beta test of the Bancor protocol with Augur proved inefficient

The backslash generated by the Blockchain community, particularly its insider developers which has gone largely unheeded by investors who know nothing about code is astonishing and raised some interesting questions:

• Is Bancor doomed to fail or are critics being too quick to judge?
• Did Bancor's investors chosen hype over due diligence?
• Are rich investors like Tim Darper using their worth to overshadow the influence of Blockchain projects and developers?
• Would developers of Bancor manage to improve their code and survive where TheDAO failed?

Let us know of your thoughts by commenting below, follow us for more updates on the Bancor project.

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