"Companies have raised as much as $4 billion this year through token crowd sales, or Initial Coin Offerings, a new mechanism that many startups using blockchain technology in some way have used to bypass traditional venture capital funding routes. That is a lot of money flowing to entities to fund their ideas and develop their products. It is also a lot of money originating from unknown sources, some of them also high risk or illegal.
While many of these startups will inevitably fail, hopefully many more will succeed. We may soon see new Amazon- or Facebook-like successes in this space. But will the next market winner end up regretting where their funding came from? Will they ever even know who was really behind the money that launched their business? How will it impact their valuation? Would competitors point this out in the future to weaken the challenger?" Read more