Per­cent

China Daily (Latin America Weekly) - - 13 Business -

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.”

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