The following article from FinanceMangnets.com raises some interesting questions about the systematic risks for Etherium off the back of what was another hugely successful ICO for Status, an open-source, mobile based messaging platform and browser that can interact with decentralised applications through the Ethereum Blockchain, raising $270 million dollars in less than 3 hours.
While this ICO offers investors another opportunity to make healthy returns, the repercussions of a clogged Ethereum network due to incredibly high volumes of transactions has a lot of investors raising questions about the long or even short term effects on the value and sentiment surrounding eth, and, the risks of having a repeat of The DAO.
Now, while Status itself seems to be a very interesting project to keep an eye on for the future, the bigger question, I feel, is whether the current state of ICO’s and their prolific explosion of late is sustainable and whether it is a good or bad thing for the market as a whole.
In an interesting video posted to Jackson Palmer, Dogecoins creator’s personal Youtube channel and covered in the following article from BitcoinMagazine, he discusses his thoughts on this topic and how ICO’s are increasing the price of Etherium and adding to the exponential growth of the market lately.
While this rapid growth in the short term has created a lot of visibility and positive press for Crypto’s, and, made a lot of people a lot of money, the real question to be begged is how viable it is for the market to continue funding startup’s through this process and to the degree that they have, and if so, what are the long term ramifications?
I am very interested to hear this highly Crypto Savvy communities thoughts on this matter, so…
Are ICO’s getting out of hand?
Is the free market of early ALT-coin adopters allocating resources effectively and intelligently?
Or
Are we riding hype train after hype train and heading inexorably to another valuable lesson in the cost of greed?
