{"id":2083,"date":"2017-07-20T11:23:13","date_gmt":"2017-07-20T11:23:13","guid":{"rendered":"https:\/\/www.bitcoinsportsbooks.com\/?p=2083"},"modified":"2019-02-07T13:32:22","modified_gmt":"2019-02-07T13:32:22","slug":"ethereum-co-founder-hoskinson-claims-icos-are-a-ticking-time-bomb","status":"publish","type":"post","link":"https:\/\/www.bitcoinsportsbooks.com\/blog\/2017\/07\/20\/ethereum-co-founder-hoskinson-claims-icos-are-a-ticking-time-bomb\/","title":{"rendered":"Ethereum Co-Founder Hoskinson Claims ICOs Are ‘a Ticking Time-Bomb’"},"content":{"rendered":"
The popularity of initial coin offerings (ICOs) has taken off to such an extent that ethereum’s co-founder has said\u00a0that there is now ‘an over-tokenisation of things.’<\/p>\n
Speaking in an interview Charles Hoskinson, who helped to create the ethereum network, said<\/a>:<\/p>\n “People say ICOs are great for ethereum because, look at the price, but it’s a ticking time-bomb. There’s an over-tokenisation 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.”<\/p><\/blockquote>\n According to a report from\u00a0financial research firm Autonomous NEXT, in the first six months of 2017 more than $1.2 billion<\/a> in digital currency was raised through ICOs, outpacing venture capital investment in blockchain and bitcoin companies. Furthermore, in the last 30 days around $600 million has been raised. Of the ICOs by category, media and social has raked in\u00a0just under $150 million in 2017 while gaming and gambling has raised less than $80 million.<\/p>\n Since the start of the year, the digital currency ether has jumped in value from $8 to around $400\u00a0in June. As of the 19th July, ether has dropped in value and is currently trading at $224<\/a>, according to CoinMarketCap. As a result, its total market value has seen a decline bringing it down to just under $21 billion.<\/p>\n Hoskinson, who was part of the ethereum network between 2013 and 2014 and now runs technology research firm IOHK, is adding his voice to a growing number of individuals who are concerned about the way ICOs are increasing at a rapid pace, which is delivering a surge in prices.<\/p>\n Taking to Twitter, UASF BitNovosti.com, said<\/a>:<\/p>\n “This bubble is a much more about ICOs than cryptocurrencies. And ICOs definitely can (and many will, no doubt) go broke.”<\/p><\/blockquote>\n However, the rise and fall in ether prices is not just down to the increasing number of ICOs on the market. Other factors have also contributed to the shift in market prices.<\/p>\n In latest developments with ether, its price has dropped by 10 percent as of the 20th July to $211.<\/p>\n The reason this is is alleged to be due to a security breach<\/a> at smart coding company Parity. According to news reports, the company reported the theft of 150,000 ether, worth $30 million. Listing\u00a0the situation as critical<\/a> on the organisation’s blog users have been urged to move ‘assets contained in the multi-sig wallet to a secure address.’<\/p>\n Gavin Wood, Parity founder and CTO, said on the Gitter web channel that there had been three accounts there were compromised:<\/a><\/p>\n “There\u00a0is an effort by the foundation underway to secure funds in other wallets to prevent any further compromises; they will make an announcement in their own time.”<\/p><\/blockquote>\n This is the latest setback that the digital currency has experienced in a matter of days.<\/p>\n On the 17th July, it was reported that around $7 million had been stolen by a hacker during the CoinDash ICO. The hacker was able to do this after altering the contract address of the ICO project.<\/p>\n Fast-forward a few days and that number has been bumped up to $10 million<\/a> as unsuspecting potential investors willingly hand over their money with 43,500 ether believed to have been sent to the fake address.<\/p>\n In late June, it was reported that ethereum’s founder Vitalik Buterin had to employ the blockchain network in a bid to disprove his death.<\/p>\n In a report from CoinDesk, it’s alleged that the death hoax<\/a> came from an internet forum site – clicking on the web page brings up a ‘404 not found page’ – stating that Buterin had died in a car crash. Following the rumours the founder of the second most popular digital currency no doubt wanted to quickly quash any further speculation.<\/p>\n He did this by announcing on social media that he was in fact alive including an ethereum block number and a hash that corresponded to it.<\/p>\nParity Wallet Theft<\/h2>\n
Vitalik Buterin Death Hoax<\/h2>\n