18 September, 2019
At the Ethereal Summit in Tel Aviv, Vitalik Buterin stated that scam projects and their ICOs significantly affect not only the cryptocurrency ecosystem but also the rate of some coins. Scammers who just want to raise funds and disappear undermine confidence in the industry, forcing investors to turn to fiat.
Also, Buterin discussed with his colleagues the prospects of launching new cryptocurrency projects, including TON and Libra. The creator of Ethereum noted that the Facebook initiative was not in vain caused such a wide resonance among officials, as it can pose a real danger to fiat banking. According to the expert, Libra has almost nothing to do with other altcoins, as it will be supported by a whole basket of currencies, which will make it possible to work with it in different countries, based on current rates. Buterin called scam projects and their ICO the main problem of the modern cryptocurrency market.
“This is a spin on the ICO idea that I had one and a half years ago. So the idea is, instead of projects having ICOs where people will just send them the money, and they, well, go away, you have a scheme where people put their tokens into a smart contract. The developers don’t just have access to the tokens, they can’t take them. Instead what happens is the money gets put in compound, or some other interesting thing and then the interest goes to the developers.” - said Buterin.
The specialist spoke about the promotion of decentralized finance. According to him, DeFi, which Libra will be partly, provides an opportunity for every person anywhere in the world to get access to banking operations even if there is no account in a credit institution. If state bodies do not accept this type of settlement and exchange of funds, this will be a real failure for the economy. DeFi is one of the fastest-growing sectors of the blockchain industry, which is why it will soon have every chance to replace fiat.