Ethereum Co-Founder Says Crypto Coin Market Is a Time-Bomb
- Startups have raised $1.3 billion through digital coin sales
- Regulation is biggest threat to digital tokens, Hoskinson says
Why Cryptocurrencies Are Selling Off
Initial coin offerings, a means of crowdfunding for blockchain-technology companies, have caught so much attention that even the co-founder of the ethereum network, where many of these digital coins are built, says it’s time for things to cool down in a big way.
“People say ICOs are great for ethereum because, look at the price, but it’s a ticking time-bomb,” Charles Hoskinson, who helped develop ethereum, said 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.”