According to a recent CNBC report, Joseph Lubin, co-founder of Ethereum and Brad Garlinghouse, CEO of Ripple warned about the uprise in fraudulent projects which offer little or no value to investors, reported by CNBC at the Singapore Fintech Festival.
Lubin claimed many of ICOs intended to back high-quality projects, but there are many copycat projects and don’t intend to deliver any value to token investors. He added that many copycat project token issuers were based in China, which led to the country’s ban on new token sales.
Garlinghouse agreed that a lot of what’s happening in the ICO market is actually fraud. He said that token issuers are now working in a “gray area,” while waiting for regulation to catch up. He took securities market as example, taking decades for rules protecting both investors and companies to be implemented — the same will happen with digital tokens.