[2017-10-26] Vitalik Buterin: 90% of token startups will fall

[FlorianB]

I am quite sure a lot of the startups will fail, but i think that should be a fact that everyone who is investing in alts or better said icos should be aware off.

Either you buy them for short term profit or you go with it. Then it will be decided, if you are in the 90% you will loose it all, but if you also have one coin of the 10% i am quite sure it will compensate your loss of the others. For me this works pretty fine at the moment.

[overlooker]

right now, i would say its more like 99%, meaningless token shit everywhere. those are not evenstartups, they are just creating token because they can..

[rayk]

Yes that is true and not interesting. 80% of the projects will be successful, seriously? They most are already same and most are trash. I bet 95% will fail.

[clickerz]

right now, i would say its more like 99%, meaningless token shit everywhere. those are not evenstartups, they are just creating token because they can..

I think  you have a good point here. As what I observed, there is an Aidrop explosion even on Ethereum tokens.  There are  new airdrop daily and most are on Ethereum network. Though airdrop is a good way to distribute a token but mostly,they are from newbies.

[Cauchy]

I think 90 percent is fair enough. Given real life startups which is expected to have positive cashflow even sooner has quite a high fail ratio I expect even more in the altcoin business. As soon as the ICO Money is gone development will halt and the Project will be forgotten.

Projects will evolve as the tech, the future is Bright but I would not bet my Money on the everyday ico schemes....

[Iolanna]

I agree that most of the current ICO's won't have any value in time, but those who really develop their projects can be very profitable. To secure your investment, just do a deep analysis of a project where you wanna deposit your money. Really worthy projects appear 1 of 50 approximately now.

[faaty]

It is not necessary to be the founder of the second most cryptocurrency, Vitalik Buterin to say that most ICOs will fail eventually. Of course most of them will. How come all those hyped project be succesful in the end? Most of them are scammers in the beginning. The rest are some exciting guys abouth crypto future without any entrepreneur experience.
Only ICOs you should invest are the most realistic things like Waves ICO, or Tezos ICO or any working concept such as casino ICOs or realistic market ICOs. Rest of them are way too risky.

[FlorianB]

Well and if you look away from blockchain also 9 / 10 classic startups will fail also. So thats nothing new, thats just normal.

You have to do your normal due diligence before buying anything. And if you do good research and invest also in future projects, i am quite sure you ll make profit out of it.

[PPleaseman]

I think he is right (a lot of startups fail too). But we are at the early stages, a lot of money will come in and  i think we will se  the fail of some tokens in the end if 2018. but like in the internet age some comapnys survied and got big.the ones you at real value for people to use. We will see

Cheers

[the1arty]

The founder of the second most popular cryptocurrency in the world has always been skeptical about initial coin offerings, or when companies issue digital tokens to attract investment. Those digital tokens’ price is based only on the desire of people to have them, Mr. Buterin noted on the ETHWaterloo hackathon, dedicated, as one can guess from the title, to the structure of Ethereum.

As Vitalik Buterin believes, 90% of current ICO projects, even based on trusted ERC20 standard and even those listed on Coinmarketcap, will eventually crash. What we see right now is only the first version or first practical implementation of tokens, and “tokens 2.0” that will emerge somewhere between 2018 and 2019 will be much better. The hype around current token projects is doomed to fall, and after that, Buterin thinks, we all will finally understand which projects are worth investing and which are not. The ICO rating system is, indeed, one of the most serious problems the market is currently facing. But the market will mature, Ethereum founder assures.

Previously, when it became known to Buterin that independent Ethereum upgrade developers had launched an ICO, he immediately told this is not what he wants to see with his currency development and swiftly established a private fund that invests in decent Ethereum development projects.

Read more

Very interesting news and I am really curious how he had counted the ratio of 90%.. I would say 50%.
So he thinks in 1-2 years time all ICO projects will fail, it means ETH will fall as well. Thus, pretty smart would be for him to regulate altcoin market somehow..

[bitcoinbox]

This is simply common sense even if I believe 90% is a bit too high.
It is probably very similar with Startups. So many are created and only a very few of them are succesful in the long term.

[muncuss]

This is simply common sense even if I believe 90% is a bit too high.
It is probably very similar with Startups. So many are created and only a very few of them are succesful in the long term.

if they really have good plan and idea, it's easy to success here. It's easy to get fund even with just weird coin name.

[Spoetnik]

Funny he noticed after all this time and after all the money he made that.. they made ETH look bad 
Where was he before during the high point ?
..counting his cash.

[coupable]

Doesn't need a genuis to tell us about the era of ICOs but every investor is responsible about his own money and has the ability to put them wherever he wants. So we can't blame scammers which they are always playing arround with or without ethereum. New startups will never stop appearing and no one can deny that there are great potentials in the market and everyday we see real solutions that may correctly affect our lives.

[FleurTunisienne]

But even vitalik was partener in some projects started with ICO !!!
Keep in mind that scammers are not just using erc20 tokens which will be updated with new version soon, but there does exist many other options.

[Coenlogan]

ASSETRON ENERGY - https://assetron.energy

Is currently in presale - 40% of final ico price.

They are developing Blockchain P2P Investment Platform for Renewable Energy - basically revolutions the concept of "Community Solar" and building a global crowdfunding platform for renewable energy assets.

The coolest thing tho is that they are the FIRST (research yourself if you don't believe me) company that will utilise the ICO funds to build a solar pv power plant in Australia -so that they also get revenue from a money producing asset and not fail.

You will see, as Vitalik from Ethereum said - 90% of icos will fail - well they will fail because they will run out of money before they get customers.

ASSETRON ENERGY can't fail for at least 30 years - a fact,   this is how long a solar plant will produce income within warranty.

So that's why its underrated - what other ico you can think of, that has a guaranteed income for 30 years (and income they will share with Token holders through rewards), that will allow them to continue developing and outlive any competition.

[Sven4]

I really like the honesty of vitalik's statement, it takes balls to be able to speak freely and honest about
this problem that most "products" (icos) on his platform are basically vaporware.
Other Developers would probably never speak about a topic like this for publicity reasons, or when really asked about
it would just lie to the public and shut their eyes to the facts at least on a public level.

[JanpriX]

This is expected and should be the utmost priority of the market right now. ICO's should have a more trustworthy standards where people can gauge it if it worth it to invest into it. We don't want to have a very big ICO-based market that don't have any practical use, be it in technological or financial terms. I'm excited to see the evolution of ICO (will happen between 2018 and 2019) as Vitalik stated. The quality of the ICO should be the first thing to be considered and else will follow.

[Argoo]

The fact that most of the tokens created by the ICO fall in price or cease to exist at all, we already see in practice. I would like to learn more about the second wave, or the version of ICO, which, according to Buterin, will appear in late 2018, early 2019. Than these ICOs will differ from the former, that will become more reliable.

[Spoetnik]

Doesn't need a genuis to tell us about the era of ICOs but every investor is responsible about his own money and has the ability to put them wherever he wants. So we can't blame scammers which they are always playing arround with or without ethereum. New startups will never stop appearing and no one can deny that there are great potentials in the market and everyday we see real solutions that may correctly affect our lives.

I agree.. every "investor" in "coins" is free to participate in any MLM / scheme coin "fuel token" app's platform smart contract coin cloning platform gimmick for ROI's they wish.. such as ? LEO COIN.

You guys are fucking blind and / or scammy and dumb.

Oh and utterly exhausting with your justifying bad.