Opinion Piece: The Inconvenient Truth About ICO Investment
THE INCONVENIENT TRUTH ABOUT ICO INVESTMENT W r i t t e n by: Ju n d a Hua ng
The blockchain industry is inevitably related to cryptocurrencies operating the whole ecosystem, especially in financial markets. It seems like investors concentrate too much on the returns of digital currencies and initial coin offerings, instead of the ideas and originality of the blockchain technology itself. Demonstrably, the decentralisation and tamper-proof attributes are often neglected by rookie start-ups and investors alike. Having witnessed some fraudulent or poorly operated ICO projects in which investors lose a huge amount of their investment in the token market, some even deem all ICOs as an analogy to pyramid schemes. This is not entirely fair as the potential of blockchain is, to some extent, shadowed by this misled judgment. Nevertheless, cryptocurrencies, featured mainly by Bitcoin and Ethereum, have been shaking financial markets, with their applications focussing on foreign currency exchange and trans-border and multinational trade. I believe blockchain technology, being the backbone of many touted ICO projects, should play a more significant role in market making. I have seen companies applying the blockchain to its supply chain management and data analytics services, which provides an insight into its products, customers, and costs. The reliable and prompt data sources facilitated through the decentralisation and trustless aspect of the Blockchain give the company the edge on customer behaviour analysis and cost management, as they would have a hard time making these outcomes and competing with other similar service providers without blockchain.
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