1. IEO has already stopped the scam. Why do I need a venture capital fund? - IEO reduced the number of scam projects but did not completely stop them. In addition, the cryptocurrency exchange does not provide investors with a full-fledged legal structure. A venture fund provides expertise from investment professionals and can perform this task better.
you are wrong. IEO not only didn't reduce scams but also it increased it. it may not look like it now because overall fundraising schemes are not as many as before. for example if we saw 10 new tokens every week in 2017 we are seeing 1 or 2 every month. that doesn't mean scam is reduced that means the overall number is reduced. scams are still ongoing and exchanges that have taken control are being bribed to let the scams go unnoticed.
If this is true, then my model is even more relevant because my model is able to prevent scams. Also, it does not have a conflict of interest in the current conditions.
2. Why is a venture fund better performing this task? - A venture fund has more resources and experience than a cryptocurrency exchange or private crypto investor. The venture fund invests its own money in the project, so there is more interest project's success. A cryptocurrency exchange is just an intermediary between the investor and the project. A venture capital fund invests with you and shares your interests.
it is not better, it is worse.
anything centralized that one authority has the power is going to be corrupted sooner or later because they won't be able to make enough money in this manipulated market. so they will end up receiving bribes to help the scammers. exactly what ICO benchmarks/advisers or whatever they called themselves ended up doing. and exactly what exchanges are doing now.
Sorry, but you're wrong here. Decentralization is good, but it does not solve all problems. We see this in the example of cryptocurrency fraud projects. Decentralized cryptoinvestors do not distinguish good projects from bad ones, therefore they lose money. In addition, not everything that is centralized is corrupt. In my model, the venture capital fund that leads the project necessarily invests its own money. The venture capital fund will also lose money in the event of failure or fraud. Therefore, honesty and decency are not the issues in this case. This is a matter of common sense.
3. Even without a scam, the project may fail. Can a venture fund protect against this? - No, it cannot. Cryptocurrency projects are risky investments in any case. But the venture fund team consists of entrepreneurs, analysts, financiers and lawyers who use their collective expertise to find and work with quality startups that have a high probability of success. They communicate with each project's team personally. They have an understanding of what they are investing in.
i disagree on two things. first investing in cryptocurrencies and projects is not risky at all. investing in shitcoins and altcoins with no reason is risky because you are investing in pump and dumps.
as for "experts" you named, such people won't waste their time on this manipulated market that according to you has high risks....
As I wrote above, I know how to motivate such people to come to the cryptocurrency market. Please let me solve this task.
