Bitcoin Maximalist Speaks Out About the Issue With ICO Token Creation Model
Bitcoin’s Maximalists Issue With ICOs
Even though crypto investment is not as lucrative as it had been at the start of 2018, Bitcoin has been capturing much of the market share of the crypto ecosystem. Currently, Bitcoin has gained a market share of more than 65% share and seems to be widening the gap.
This is the perfect time for Bitcoin maximalists—folks skeptical of cryptocurrency that’s not Bitcoin, to be critical of Altcoins. An excellent instance came in the form of an epic tweetstorm by a bitcoin loyalist named Eric Wall. In thirty tweets sharp as darts, Wall mocked the premise of crypto projects that raise money by selling tokens to use a blockchain service.
There’s an excess of these tokens and their value has imploded spectacularly. Wall says this collapse was inevitable.
1/ Plenty of coins & ICOs are now down -90%. Hopefully the people who'll never be receptive the following commentary have left crypto twitter by now, but they'll surely be back for the next bull run. Making this thread to use as a reminder for when the idiocy returns 👇 pic.twitter.com/VlsVHNmkaI
— Eric Wall IS RIGHT (@ercwl) August 26, 2018
“It turns out, requiring users to hold tokens in order to access basic features is bad UX, horribly inefficient & unnecessarily complex,” he adds.
And Eric Wall has a point. So many altcoin projects now appear first and foremost designed to sell tokens, rather than creating a compelling technology people want or need. In this sense, the Initial Coin Offering (ICO) economy feels like the obverse of the classic Silicon Valley playbook, where successful startups—think Pinterest or Instagram— attract millions of users and only afterward try to make money from them.
Of course, Altcoins exist because they serve some purpose and are going nowhere. However, Wall’s criticism of Icos also holds.