Ethereum co-founder shows Irrational Exuberance in ICOs

‘Irrational Exuberance’ is prevailing in the Initial Coin Offering (ICO) market

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According to the co-founder of Ethereum, Joseph Lupin, ‘Irrational Exuberance’ is prevailing in the Initial Coin Offering (ICO) market. He made this statement to the public last Wednesday (8th November 2017). Joseph Lubin believes irrational exuberance in ICOs have great potential to becomes a powerful technology on the long run in the market world.

Lubin made the following statement at the Web Summit Technology Conference held in Lisbon, Portugal;

There’s certainly some irrational exuberance in the space, it’s such a profoundly powerful technology that people are excited about it and I think that that’s what’s driving this rush into the ecosystem.

He further mentions the following adding to the statement;

People tend to, or groups of people tend to, operate in fear and greed cycles and I think we are going to see that. I think the growth in the ecosystem is going to continue quite dramatically.

The Ethereum blockchain platform allows users to develop their own decentralized apps. The platform offers Ether, the 2nd highest-valued cryptocurrency in the market.

What are Irrational Exuberance in ICOs for?

When a company want to find the necessary funding to initiate a project or a startup, the company can have a crowdfunding event to gather the investors. A new digital currency is created and sold to the investors in exchange for money or other well-known cryptocurrencies at this crowdsale event. This event is the Initial Coin Offering (ICO). Investors do not get a share of the company, instead the new cryptocurrencies can be sold later or used within the platform once the product is developed.

So far in 2017, startups have raised over $3 billion in ICOs. There are some countries that have banned initial coin offerings due to lack of state-governed regulations.

According to Lubin, business networks and main infrastructure facilities can use blockchain and decentralized ledger technology. This means distributing a transaction among a set of nodes or computers within a network. This will allow to secure the integrity and transparency in the transaction process.

There are lots of ICOs on the Ethereum blockchain. As the number of ICOs increase, the crypto tokens available will also increase.

Lubin sees the true potential of irrational exuberance in ICOs. Even an individual in need could create an ICO for $1 million, to help that person to get through college. Not only that, it can also help the person to start a business. Investors will be able to get a return when the business becomes successful and profitable.

Lubin believes tokenized securities of capital information will be more efficient. More investors for the company and capability to create new business models are advantages of generating crypto-tokens.

Lubin mentioned on his closing statement;

So, I think token launches, which are non-security tokens, as well as tokenization of securities will be a huge paradigm.

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