The digital startup world has been selling their own Cryptos or tokens to raise funds and this could result in slowing down the sales of cryptocurrency as investors are concerned about the transparency of the Industry and the potential scam risks.
About 500 global startups have kept banks and financial firms as intermediates and sold their cryptos and tokens. Since the cryptocurrency industry is mostly not under regulation and have shown immense growth in the past years, it has successfully gained potential investors and interested millions of people.
The US Securities and Exchange Commission has recently announced a set of new rules that have slowed down the Crypto business. However, most critics are of the view that this control was needed since the market has been witnessing a lot of illegal cyber crimes.
“We believe that regulation in the ICO space will filter out some of the nonsense in the marketplace and is part of the overall maturing of the crypto asset class”, said the director of research at ICO advisory firm Strategic Coin, Mr Sam Lee.
The SEC tracked down a number of fraud companies which tried to gain funds through illegal deals. Countries such as China and South Korea have banned ICOs. The Co-founder of Blockchain Capital, Bart Stephen’s said that he is not certain of the ICOs in the long-term but for the time being, the Industry did well and people got lured into it.
Blockchain technology is used by Bitcoin and most other Cryptocurrencies which is a digital database where information can be stored and shared with a huge number of networks. This supervision is needed to create a safer environment for the investors and pose a control on the increasing frauds in the Startup market. Blockchain would ensure that the illegal growth of Startups come to an end and investors find their lost faith in the Digital sector back.