Friday , June 18 2021

Invest in currency – more risk than benefits! An adviser explains

In the first half of 2018, 86% of the main initial (ICO) proposals quoted on Cryptomonge Exchange in 2017 are lower than their initial quote price and ICO portfolio- up 66% since the peak of the market earlier this year. In addition, 30% of them have lost significant value, according to the EY Romania analysis.

According to a recent EY study, Initial Leg Installations: Class 2017 – a year later, which examined the increase of ICO and investment revenues, it seems that things are not as good as A frenzy expected by investors last winter, according to the quoted analysis.

Gabriel Sincu, Associate EY Romania, explained: The EY study found that a lack of robust assessment and due diligence process from potential investors has resulted in extreme volatility in an ICO, which is still a problem. The study also found that the ICOs claim that they had raised more than $ 15 billion in 2018, compared to $ 4.1 billion in 2017. However, EY found that only 29% (25) o The ICO projects in 2017 that the EY have evaluated have produced prototypes or work products – an increase of only 13% since December 2017. The remaining 71% do not have any proposals on the market.

Virtual coins are falling in value

The study also examined the 25 companies with work products. From 25, seven receive a payment in current currency ("fiat") as well as ICO coins for their product products. As a result, customers can make direct purchases without buying the coins distributed in the ICO process, avoiding the community of cash holders and reducing the value of ICO coins. In at least one case, the ICO company has given the best ICO investors by not accepting their coins (non-scanning).

The Ethereum platform continues to be the forefront

Ethereum is the most prominent platform and has the largest activity among developers and social media. Although new platforms appear regularly, there is no indication that the new ICO infrastructure projects have had no success in reducing Ethereum domination as the main stage in the field.

The study concludes that the level of benefits, in the face of these developments, does not seem to justify the risks presumed in this market, and only through exceptional luck or a vision portfolio strategy that can achieve the earnings. Therefore the due diligence and risk awareness process are more important than ever.

In Romania we can not say that things are in any way different. After the will that swept investors early this year, the field went into a shadow coat. The authorities have not given the best to regulate or ban the phenomenon, awaiting a decision at European Union level (must continue to be determined).

In addition, from the financial perspective, it seems that the issue of cryptomonas is completely ignored, as the authorities are not interested in providing solutions to those involved in operations o such. For now, things seem freezing. Investors who have had a bet on the field of the start and who now stand on earnings that may be of considerable courage do not have to go to the authorities and ask for clarification. On the other hand, taxpayers can not claim tax on these earnings, provided that cryptomonas are not directly in real money transferring to taxpayers' accounts (natural or legal persons).

Those who have learned the domain later are also determined. To the extent that things do not seem completely transparent, the risks are very high, and the spirit of the Caritas phenomenon over the last two decades is still tired. So we expect the blockchain technology behind this area to show its huge potential. Only then can we say that a new era of economics is beginning to be dominated by cryptomonas.

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