Critical analysis reveals that cryptocurrency ICO “white papers” are mostly complete crap written by clueless noobs who all thought they were the next Steve Jobs
by: Ethan Huff
NaturalNews.com
Tuesday, January 30, 2018
The year 2017 was a big year for cryptocurrency – not only for crypto-king Bitcoin, but also for the hundreds (or even thousands) of new initial coin offerings, or ICOs, that popped up, promising big returns for little investment. But a new analysis by accounting giant Ernst and Young reveals that a shocking number of ICOs never actually panned out because many of them were garbage.
As of last June, an impressive 90 percent of ICOs reportedly reached their funding goals, meaning enough people jumped on board to make them a reality. But by November, less than 25 percent actually reached their targets, meaning they never actually panned out in terms of coming to fruition.
The reason, explains Joe Jarvis for The Daily Bell, is that the crypto markets were literally flooded with ICOs and coins for every idea under the sun. The so-called “white papers” that backed many of these were often thrown together by people who didn’t even know what they were talking about, as they failed to explain both the technology and the purpose of the new cryptocurrency that was entering the market.
The vast majority of these white papers, it turns out, were completely useless, and were merely used as bait to lure inexperienced investors into handing over their hard-earned cash. These white papers contained all sorts of crypto cliches that sounded “techy” and exciting, but that in many cases didn’t even make logical sense, let alone provide a valid explanation as to how they would work.
Phrases like “next-generation platform,” “ecosystem,” and “decentralized network” helped to lay the groundwork for getting investors to jump on the bandwagon, believing emerging cryptos to be the solution to the problems of private centralized banking – which they, indeed, could supplant in theory. The problem is the enormous amount of seemingly fraudulent crypto offerings that currently plague the market.
“Most ICOs were just selling an idea,” writes Jarvis. “They had no business yet, and the capabilities of the founders were generally untested. 84% of projects launching Initial Coin Offerings analyzed by Ernst and Young were in the idea stage. 11% had prototypes, and just 5% were in operation. 32% of projects did not even specify when their project would go live.”
More than $370 million worth of cryptocurrency was stolen by hackers last year
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