BitTorrent’s Bram Cohen Calls Every Cryptocurrency ICO A Scam Until Proven
Bram Cohen urges consumers to take caution with any ICO in his latest statement as the creator of BitTorrent. His role in the industry is fairly recognizable, and he is far from the first figurehead in the crypto world to make major claims against new platforms.
His comments cover a strong opinion of the crowdfunding ICOs, though he did not critique the model itself. Essentially, he discussed the doubt that journalists should consider when they consider the involvement in any investment. In a Twitter post, Cohen said, “As a journalist, you shouldn’t give any ICO the benefit of the double that they’re a ‘good project.’ Appropriate Bayesian priors are that they are all scams until proven otherwise. “
His opinion is relatively similar to another member in the community – Bobby Lee, the CEO of BTCC. He expressed his opinion that ICOs are simply “95% database projects.” This leads to another concern that has been brought up, which is that of blockchain projects. Blockchain projects unfortunately do not complete adapt to the decentralization that the infrastructure uses.
Though Cohen is not vocal about the proof that he suggests that ICOs have, though he implies that the main concern is their ineptitude to help consumers. His tweet also included that “Incompetents raising money to do things they are incapable of doing are scam artists.”
He quoted another tweet from Zcash by a member named Zooko, which included a link to a New York Times article that discussed the problems that Envion has experienced with its $100 million ICO sale. Interestingly enough, the user has just been the target of trust concerns after he made his conversation with Bitmain CEO Jihan Wu public. The conversation demonstrated his lack of honesty, though Zooko believes that his concerns were sincere.
Even with these comments, ICOs are still getting positive reactions, since the EOS sale ends this weekend after raising $4 billion over a project with no product. Another ICO, Tezos, raised over $200 million last year, and their beta release will be in June 2018.