of blockchain technologybased projects have failed to come to fruition, according to Deloitte
Somehow, laypersons, and gullible, reckless or greedy investors, have come to associate blockchain with fool-proof business and sound investment options. That’s emboldening fraudsters to bait such unsuspecting people with so-called blockchain projects, which are essentially Ponzi schemes bearing a different label.
“It’s an insult for Ponzi if you say ICO is like Ponzi,” said Zhu Xiaohu, a seasoned investor who had bought into Ofo and Didi in the past. “Apart from cybercurrency, what else can blockchain do? Ninety-nine percent of the ICO projects are absolute frauds.”
Yet, it is believed that some fundraising activities in the PE garb are being launched overseas by some Chinese companies, despite the ban on ICOs. Could we say a blockchain bubble is in the making? Is a cybercurrency crash inevitable?
As Deloitte reported late last year, 92 percent of so-called blockchain-based projects have failed so far for want of clarity on where the technology should be applied.
A social media post by a business insider, who shall remain anonymous here, best sums up the situation. “Blockchain is like a love affair. You want blockchain to change the world, only to find out the best scenario is bitcoin and ICO. You want your love affair to be a passionate and legendary one, but all you ever get is nothing but a quiet and normal life.”