I recently read this article discussing bankers leaving their jobs in search of cryptocurrency 'gold'.
Richard Liu gave up a seven-figure salary this month to get into one of the hottest financial instruments around right now: initial coin offerings. The former China Renaissance deal-maker has since backed a clutch of cryptocoin sales that've raised millions -- sometimes in seconds -- often without a single product.
From Hong Kong and Beijing to London, accomplished financiers are abandoning lucrative careers to plunge into the murky world of ICOs, a way to amass quick money by selling digital tokens to investors sans banks or regulators. Cut out of the action, a growing cohort of banking professionals are instead applying their talents toward buying or hawking cryptocurrency.
Many are saying that traditional investment banks should start looking at this space. I believe much of allure of digital currencies is the seemingly unlimited barriers and gains.
The U.S. Securities and Exchange Commission signaled greater scrutiny of the red-hot sector when it warned on Tuesday that ICOs may be considered securities, though it stopped short of suggesting a broader clampdown. The regulator however did reaffirm its focus on protecting investors: part of the appeal of ICOs lies in the fact that -- for now -- anyone with a bold idea can raise money from anybody.
What's interesting is that ICOs (initial coin offerings) don't give you a shares of a company. Instead they give you virtual tokens, or cryptocurrencies, in hopes of spreading their technology.
What do you guys think of these? Is it all just a bubble as many individuals have suggested? Is there really value in these ICOs or are we looking at the next Dot Com bubble just on a different playing field?