Coinbase Allows Public ICOs Despite Past Crypto Catastrophes

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Coinbase right, The crypto exchange platform, They have announced that they’re going to start offering initial coin offerings, ICOs on the platform. And it has sparked some controversy. right, and ICOs They’ve been around for a long time, but they gained a lot of notoriety between 2017 and 2018, when there was just a crazy amount of hype around crypto. and as a name implies, it’s a way to buy into a crypto coin, right when it launches. And almost all of them have ended up being scams. right, Time after time, we’ve seen marketing teams spending more time offering new coins with all kinds of claims over how great they’d be or some new feature they offered. But then almost none of them were true. Instead, it’s often just been a way to skyrocket the price of different coins until launch, and when the ICO happens, they’d be sold off. right, you often end up seeing a handful of people making a crazy amount of money. now one of the positives, And I say this as someone that consumes entertainment, is that these ICOs scams have helped launch the careers of people like coffeeZilla. right, He does these deep dives and investigates the scene. And we’ve also seen ICOs involving Kim Kardashian, Floyd Mayweather and others who were eventually charged with SEC violations by the Biden administration. so with almost the entire space largely being considered scam territory, there are real concerns for how Coinbase is going to tackle this. right, People asking how are they going to decide which are legitimate and which are scams? and while Coinbase is claiming that the issue with other ICO’s is that they had no regulatory standards, and they’re going to change that by allegedly requiring certain metrics to be hit. and at the same time, they say they’re going to develop an algorithm that somehow knows which users are in for the long haul and not there to try and make a quick buck before the rug pull happens. and saying part of it will take some time as it identifies users who quickly sell versus those who hold on to coins. and probably one of the biggest safeguards that Coinbase wants to add is a timer to any sales. Right, Meaning that after an ICO, buyers and founders of the coin, they can’t sell anything for at least six months, giving it time to find its footing. right, And so with all this, the first real test is going to be monad. because monads is the first coin that they’re offering and at least based on public perception, they released a lot of information about the back end of the coin that past ICO’s haven’t. right, so many in this space seeing this is kind of traditional finance in the crypto world blurring, and for their part, Coinbase is at least attempting to present itself as a neutral regulator in a world where the Trump administration has increasingly taken a step back from regulating the crypto market. right, they dropped multiple lawsuits against crypto people and crypto companies, including Coinbase itself. and that while in Congress, the urge to pass things like the Clarity Act, which would introduce official regulations on crypto, it’s plummeted. But for now, at the very least, we’re gonna have to wait to see what happens with Coinbase and these ICOs.

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Produced by: Cory Ray, Philip DeFranco
Edited by: James Girardier, Maxwell Enright, Julie Goldberg, Christian Meeks, Matthew Henry
Art Department: William Crespo
Writing/Research: Brian Espinoza, Philip DeFranco
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#Coinbase #Crypto #CryptoScam