LONDON — Cryptocurrency startups around the world have raised billions of dollars over the last 18 months to build software companies that they hope will rewrite the rules of everything from voting to stock trading. But even many cryptocurrency advocates expect the majority of projects to fail.
“Ninety five percent are going to end as nothing because that’s startup funding,” Yoni Assia, the CEO of eToro, a social trading platform that supports a range of cryptocurrencies, told Business Insider this week. His comments mirror those of Joseph Lubin, the cofounder of cryptocurrency ethereum, who this week compared the crypto boom to the dotcom bubble of the late 1990s that ended in a spectacular bust in the early 2000s.
Lubin told a press conference at MoneyConf in Dublin: “If you look at the dotcom boom and bust, there were so many of the same issues back then. So much money invested, lots of money lost, lots of failing projects.”
Dominik Schiener, the creator of cryptocurrency IOTA, told BI earlier this year he expects less than 10 of the more than 1,400 crypto projects that have sprung up over the last two years to survive and Danny Masters, a former JPMorgan trader turned crypto investor told BI that just 5% of projects are worth backing. All four are far from crypto sceptics, though.
They believe that those projects that do survive will transform the world and make huge amounts of money for those who back them. eToroHuge amounts of capital have been invested into new cryptocurrency businesses over the last 18 months, largely through so-called initial coin offerings (ICOs). Read more from chron.com…
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