Jihan Wu: ICO Bubble collapse is only a matter of time
The founder of the most expensive cryptocurrency company believes that the ICO as the funding model has not proved anything except that is just a fashionable craze. Jihan Wu, the CEO of mining conglomerate Bitmain, expressed this idea during an interview with CoinGeek, simultaneously noting that the so-called “ICO-bubble” “unstable” and ultimately burst.
“I think ICO is a kind of unstable financial bubble. And it, ultimately burst, said Wu. It’s only a matter of time. Maybe a year or two. Anyway, he’ll just disappear.”
Although Wu suggests that traditional securities (stocks, bonds, etc.) over time, migrate to licenzirovanie platform, he also believes that the current ICO model – in which investors buy tokens, which can be regulated as securities, but does not provide buyers the dividends and voting rights – in the end disappear, because investors participating in Krautsevich only in speculative purposes and focus exclusively on the subsequent sale of tokens at a higher price.
Woo is not alone in such pessimistic view on ICO. Although the world’s largest crypto-exchange Binance was created using ICO, the head of its newly established venture capital wing notes that the company also believes the industry bubble that will eventually burst.