Or i should say the fraud is unravelling. Now anybody who is older than 20 years vividly remember the scam of adding .com to the company names and launching the IPOs. Day trading high flyers had become a occupation all of a sudden. In the end, when the dust settled most of the day traders vanished into oblivion.
The game has become intense in the Crypto space since the beginning of Dec 2017. Bitcoin, the king of crypto topped at 20k, started a wave B advance and is now in a Wave C decline. While the King was in a wave B, the alt coins and the ICO tokens went into a frenzy - 400-500% gains in a matter of month. It's all unravelling now !
I see the same parallels to the dot com era. Same fraud going on by the tech companies in the ICO space. Adding the word "Blockchain" to their businesses. Crypto was all about decentralisation and moving away from the monster called central authority, eliminating the middleman and thus lowering the transaction fees. Today i was reading a whitepaper of an ICO offering. This company uses centralized servers for the data storage, but they claim to be a decentralized marketplace. LOL ! And worse it says if the transaction costs on Ethereum goes higher, they may even resort to taking the company from a public blockchain to a private blockchain to avoid costs. How does a private blockchain solve the horrors of a central authority ? Technologically speaking these folks are grasping at the straws - huge transactions making the business model unviable and a non-scalable technology . Many are centralized traditional solutions clothed in blockchain buzzword. Utter fraud going on and the SEC is all silent about it. When the investors lose their shirt, the SEC will come out and make a lot of noise.
And the crypto traders are in a virtual horror show right now. Exchanges getting overwhelmed and shutdown, no order confirmations, delistings of tokens - you name it. Again when the dust settles, there will be a few retail crypto traders left. Seen this movie before.
Edited by NAV, 10 January 2018 - 09:31 AM.