Investing in a crypto currency – more risk than good! Explains the consultant


In the first half of 2018, 86% of the main initial offers (ICOs) quoted on the Cryptomonge in 2017 were lower than the initial listing price and portfolio of these ICOs, which is 66% more than this year. In addition, according to the EY analysis, Romania has lost a significant value of 30%.

According to a recent EY study at the global level, initial coin offers: the year 2017 class – a year later, which examined the progress of ICOs and its revenues in line with those analyzes, seem to be good things, as investors expected in past winter.

Gabriel Sincu, affiliated partner of EY Romania, explains: The EY study showed that the lack of a reasonable assessment and the process of due diligence of potential investors caused extreme volatility in ICO performance, which is still a problem. The study also showed that the ICO claimed that in 2018 they generated more than $ 15 billion, compared with 4.1 billion in 2017. However, EY found that only 29% (25) ICO projects in 2017 by EY estimated, prototypes or work products were manufactured – which is only 13% since December 2017. The remaining 71% have no offers on the market.

Virtual coins diminish value

The study also examined 25 companies with working products. From 25, seven receive payments in the current currency ("fiat") and ICO coins for their product offers. Consequently, customers can buy directly without purchasing coins issued under the ICO procedure, thus avoiding a group of coin holders and lowering the value of ICO coins. In at least one case, ICO abandoned ICO investors because it did not accept its coins (de-tokenization).

The Ethereum platform remains predominant

Ethereum is the dominant platform and has the greatest activity among developers and social media. Although new platforms regularly appear, there is no sign that the new ICO infrastructure projects have succeeded in reducing Ethereum's dominance as the main platform in this field.

The study concludes that in view of this development, the level of benefits does not appear to justify the risks assumed on this market, and profit can only be achieved through an exceptional happiness or a visionary portfolio strategy. Therefore, a careful review and awareness-raising process is needed than ever before.

In Romania, we can not say things are different. After blowing, which fell investors at the beginning of the year, the field slowly descended in the shadow of the shadow. The authorities did not rush to regulate or ban the phenomenon that awaits a decision at European Union level (the decision is not yet expected).

Moreover, from a fiscal point of view, the question of cryptonics seems to be completely ignored, as the authorities do not want to provide solutions to those involved in such operations. Now things seem frozen. Investors, who have stood on the ground from the very beginning, and now stand on potentially important profits, do not have the courage to go to the authorities and ask for clarification. On the other hand, taxpayers can not claim a tax on these earnings until cryptomones are tangible in real money that are transferred to taxpayers' accounts (natural or legal persons).

Those who have learned later are also undecided. If things do not seem to be transparent at all, the risks are very high and the spirit of the Caritas phenomenon has persisted in the past two decades. We therefore expect that technology in this field will show great potential. Only then can we say that in the new economic era, the cryptomonals begin to dominate.

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