ICOs Are a "Ticking Time-Bomb", Says Former Ethereum CEO

After a recent torrent of ICOs (initial coin offerings), many in the cryptocurrency community are expressing fears of what they see as systematic risk to the ecosystem while regulators are starting to notice the field and its perils.

Now a senior figure in the space, Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term's first CEO, is publicly sounding the alarm bells too.

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“People say ICOs are great for ethereum because, look at the price, but it’s a ticking time-bomb,” Charles Hoskinson told Bloomberg in an interview. “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.”

Despite this, Hoskinson thinks that cryptocurrency ICOs will continue to serve as a crowdfunding method for new ventures, albeit after a much-needed purge of the current players in the field. He said: “Regardless of Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term ICOs are here to stay. After it collapses they’re going to pick up the pieces and say how do we do things differently.”

Background

Hoskinson founded Invictus Innovations and created BitShares, a cryptocurrency utilizing Delegated Proof of Stake, a consensus algorithm also used by Lisk. He is a founder of Ethereum and served as its initial CEO from December 2013 until June 2014.

Hoskinson’s contributions to the smart contract platform are said to include designing the legal structure, crowdsale model, and building a global network of supporters. Hoskinson is currently the CEO of the Hong Kong based Input Output HK.