Financiers are reportedly abondaning lucrative careers to trade digital tokens.A growing number of banking professionals are trying to get into th
Financiers are reportedly abondaning lucrative careers to trade digital tokens.
A growing number of banking professionals are trying to get into the trendy field of initial coin offerings, a business that promises easy money that can be earned in less than a minute, as Bloomberg (bloomberg.com) reported.
“Traditional investment banks and VCs need to monitor this space closely, it could become very big.”, said one of the partners at the hedge fund FBG Capital as quoted by Bloomberg.
“Unlike the traditional financial sector, there are no ceilings or barriers. There’s so much to imagine.”, as he added.
Initial coin offerings are means of crowdfunding for blockchain technology companies. However, even the co-founder of the entereum network expressed an opinion that things should cool down, as the online media wrote in a recent publication.
“People say ICOs are great for ethereum because, look at the price, but it’s a ticking time-bomb.”, as Charles Hoskinson, one of the contributors to ethereum`s development, told Bloomberg.
“There’s an over-tokenization 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.”, as he elaborated, while speaking to the reporters.
Hoskinson has reportedly joined the ethereum founding team in late 2013 and left in June 2014 as he supported a for-profit entity, contrary to Vitalik Buterin that wanted to keep it as not-for-profit.
The critics believe that ICOs are bubble that can soon deflate. Chief Execurtive Officer at Ripple, a financial technology company, Brad Garlinghouse and Hoskinson, among others, are reportedly supporting this view. Yet, they said that cryptocurrencies will keep making it possible for companie to raise money, but it will be done in a regulated environment.
“Regardless of regulation ICOs are here to stay.”, as Garlinghouse commented.
“After it collapses they’re going to pick up the pieces and say how do we do things differently.”, he added.
ICOs are definitely disrupting the financial world. Their future developement will be followed for quite some time.