Cryptocurrency vs “Intellectual Mastrubation”

[GetbitcoinsIo]

Can cryptocurrencies and ICO restore capital formation in a free economy?

Looking at many altcoin pump-and-dump schemes and many recent ICOs, the title of our blog can probably elicit no more than a smile. After all, didn’t ICO market become synonymous with half-baked projects, outright frauds, and intergalactic bridges to nowhere never to be built?

Yes, there is quite a bit of fraud going on. However, what people forget is that this fraud pales in comparison to the fraud we witnessed in the current financial system over the past two decades. Just recall the housing bubble of 2003-2008. Garbage real estate loans were securitized and sold as investment vehicles. Investment banks have taken CCC rated loans, combined them into tranches and somehow put out AA securities (magic!). Of course, S&P and Moody’s had to rate those vehicles. But the mathematical models used to create those instruments were so opaque, that it was not hard to fool the public. And rating agencies were only happy to be paid to rate those pyramid schemes. Your thoughts? Read more here: https://cryptolo.io/cryptoblog/index.php/cryptocurrency-vs-intellectual-mastrubation/

[hugeblack]

A mistake does not handle by mistake, most of ICOs's campaigns turned into deception, the fact that the current financial system is deceptive is not a justification for this type of fraud.
It looks negative to Cryptocurrency because the microscope is on it. New techniques rejected mostly, but I expect this talk will reduce in the future.
I do not know why Cryptocurrency was mentioned even though all the talk was about ICO.

[kevoh]

I do not know why Cryptocurrency was mentioned even though all the talk was about ICO.

First, altcoins are a category of cryptocurrency while an ICO is a means, often not regulated, through which funds are raised for a cryptocurrency. The three terms : altcoins, cryptocurrency and ICO are clearly related and I believe there's no way you talk about pump and dump schemes and fraudulent ICOs that you will not be referring to Cryptocurrency in a way.

[Vlack]

Sure there is higher fraud in the financial system, and that's really one of the biggest crimes in the world. But the only reason why I don't put the frauds in crypto in that level is because crypto is actually chump change in comparison. But it's all done by the same type of people.

[GetbitcoinsIo]

A mistake does not handle by mistake, most of ICOs's campaigns turned into deception, the fact that the current financial system is deceptive is not a justification for this type of fraud.
It looks negative to Cryptocurrency because the microscope is on it. New techniques rejected mostly, but I expect this talk will reduce in the future.
I do not know why Cryptocurrency was mentioned even though all the talk was about ICO.

Yes, I agree. I am not trying to justify it, just pointing out the hypocrisy of the media focusing on crypto frauds and not on the traditional financial frauds which are literally millions of times larger.

[GetbitcoinsIo]

Sure there is higher fraud in the financial system, and that's really one of the biggest crimes in the world. But the only reason why I don't put the frauds in crypto in that level is because crypto is actually chump change in comparison. But it's all done by the same type of people.

Also, this is only the first part of the blog. In future installments I will focus on how cryptocurrencies and ICOs done properly can restore capital formation in the free economy. Please subscribe ))