In a recent interview, Ripple chief executive officer, Brad Garlinghouse, and Ethereum co-founder, Joseph Lubin, have criticized the current state of the ICO industry. The pair expressed concerns that although many “high-quality projects” are using ICOs as a fundraising vehicle, numerous “copycat projects” have raised money without “intend[ing] to deliver any value to the people buying the tokens.”
Ripple’s CEO Believes That Regulators Need to Catch up With the ICOs Industry
Ripple CEO, Brad Garlinghouse, expressed his belief that “a lot of what’s happening in the ICO market is actually fraud,” also mentioning the increasing number of ICOs facing litigation. Although concerned by the actions of many token sales, Garlinghouse expects that said fraudulent activity will “stop” once regulators catch up with the industry.
Garlinghouse also asserted that token issuers currently operate in a legal “gray area,” whilst they wait for regulators to catch up with the industry. The Ripple CEO suggested that the futures markets may prove to be analogous – as it took significant time to develop a regulatory framework for the futures markets…