The Case Against Blockchains and ICOs

[27 Apri 2018] To round-off and balance our mini-series on cryptocurencies and blockchains, here are some quick 'caveat emptor' notes. These are FYI only, as with crypto-currencies we have listed, listing is not endorsement, promotion or agreement.

The Case Against Bitcoin via
As written by the former CEO of Intuit and founding CEO of Paypal
  • Payment - Bitcoin is not widely accepted and its value swings too much
  • Store Of Value - Too volatile, is your coin worth $100 or $10,000 today?
  • Thing In Itself - Exists only in a virtual world, intangible
  • Others - Slow, resource intensive to mine, exchange hacks etc.

Blockchain is Over-Hyped via [Medium article]
  • Hype - Try replacing the word 'blockchain' with 'database'
  • Practicality - When actually used, found not totally workable
  • Mundane - It's just a tech term like 'client-server' (vs a concept like internet)
  • Not Trustless - You have to trust, for example, the exchange
  • Decentralisation - Business and commerce are built on trust and institutions

The Howey Test via
Is an ICO a security (offering of shares) or a utility (like tokens in a game arcade)? If it is a security, it might be subject to regulation. As a rough guide, a product is a security if it passes all of the following tests: 
  • An investment of money (money is being collected)
  • An expectation of profit (not charity, not tokens to play games at the arcade)
  • Investment in a common enterprise (pooling of money)
  • Profit comes from the efforts of the promoter (you are not in control)

ICOs Under The Spotlight
ICOs issues have been widely reported, examples:

For counter balance, check out Coin Telegraph for crypto-friendly news. ICOs which are for the sale or distribution of (genuinely useful or entertaining) utility tokens (like the tokens used for games at the mall arcade) and not merely fund raisers, disguised or otherwise, could have potential. [This post is not investment advice.]

Extra Picks (next week, W1-May-2018)
Link Adobe Conference @ KualaLumpur
Link WeWork Party @ KualaLumpur
Link Shopify Meetup @ KualaLumpur
Link PitchIn Presentation @ KualaLumpur fixed
Link Thailand Digital @ KualaLumpur
Link Green Drinks @ KualaLumpur
Link AI Day @ Singapore fixed
Link Fintech GetTogether @ Singapore
Link NuMoney Level-Up @ Singapore
Link RolandBerger Talk @ Bangkok