Disillusioned Token Investors Demand Real Talk About Risk

More and more investors who are passionate about blockchain technology become frustrated with a lack of tangible progress on professional risk management strategies across major token projects.  Yet this disillusionment hasn’t slowed the race to get involved, with more than $6.3 billion raised through ICOs during the first quarter of 2018 alone. Against that backdrop, veteran cryptocurrency investors are questioning whether many of these tokens actually add value compared to, say, traditional venture capital.  Self-reporting could help reduce trepidation and uncertainty among token holders. There are already standards for reporting and evaluating performance in the context of equity financing. The token economy needs similar processes to soothe not only investors, but also regulators who have been increasingly looking askance at the industry. Another source of investor frustration is issuers’ fixation on raising capital, which is merely one small step on the road to launching a new blockchain network, product or service. Because quite frankly, investors still want a payoff regardless of timeframe or philosophical alignment with the project.

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