Central Banks New Found Protectionism on ICOs and How the Komodo Team is Fighting Back
Initial Coin Offerings (ICOs) over the past year with investors throwing billions of dollars at hundreds of different decentralized projects. Once again, technology has moved faster than the centralized governments around the world and it is only recently we are witnessing a reaction from some of those governments.
The world has seen a surge in (ICOs) over the past year with investors throwing billions of dollars at hundreds of different decentralized projects. Once again, technology has moved faster than the centralized governments around the world and it is only recently we are witnessing a reaction from some of those governments. Just when we were beginning to get clarity over Bitcoin’s legal status as a legitimate investment vehicle, governments are beginning to urge caution over participating in ICOs.
First was, of course, China with reports of China temporarily banning ICOs for more regulated ICOs conditions. According to the People’s Bank of China, the selling of decentralized tokens is “illegal and disruptive to economic and financial stability”. Such statements are questionable at best, for funding ICOs actually increases economic and financial stability worldwide. This statement can easily read between the lines; ICOs are harmful to their currency, the yuan. Essentially what is occurring is a new flavor of protectionism where central banks around the world are concerned that their country’s currency will flow overseas to fund overseas projects rather than within its own boundaries. Because the central banks represent their countries at large, it is not surprising to see such measures being put in place. However, do regulations and bans on ICOs advance the human race or does it retard growth?
“The Philosophy of Protectionism is a philosophy of war” – Ludwig von Mises
ICOs are important for the advancement of the human race because it allows anyone around the world to invest in projects internationally without the need for a middleman. This kind of financial freedom leads investors into investing in projects they believe will have a great interest in the future; projects that will eventually benefit the human race as a whole at completion. To invest in projects with potential returns is a philanthropic act, for the services they provide are eventually paid for through voluntary trade, meaning, the service is more valuable to the user than the cash they parted ways with. If this was not the case, the customer would not part ways with the money in the first place. The newly found protectionism of ICO markets seeks to limit an investor’s choice to invest in projects he/she believes will provide beneficial services for society as a whole in the near future. It is this human right, the ability to fund projects of your own choosing, that is being taken away by central banks around the world. You, being the investor, are the most capable and qualified entity in knowing where to spend your own money, not a central authority. The ability to trade freely is what Ludwig von Mises deemed the ultimate cure to war because it encourages human cooperation beyond borders.
It is with great haste that technologies to protect these ICO’s are of the utmost importance and it is the Komodo team once again to the rescue. The Komodo team is planning to decentralize the ICO process, meaning, it is impossible to impede the crowdfunding process.
According to Audo, Komodo community manager, “Komodo Platform is providing both coin issuance and crowdfunding solutions without colored coins or proxy tokens. We give the development team a native cryptocurrency, and an independent blockchain that comes with all the capabilities Komodo is developing.”
dICO (decentralized Initial Coin Offering) is an open source solution for crowdfunding. Its main advantages are security and transparency, which are both extremely important for the investors. Hundreds of servers will be powering the crowdfund, and thus the dICO cannot be stopped or manipulated through actions such as a denial-of-service attack.
According to dICO: “We offer our solutions for free, which puts us in a unique position when we approach businesses who are looking to enter the blockchain era. We have already received some interest, even though we are just getting started.”
Once implemented, the users will have the ability to participate in ICOs anonymously without the interference of external forces. The projects, however, will be unregulated and it will be the investor’s job to investigate its legitimacy. But the most important thing is that investors get to invest in whatever project they like while being uninfluenced or barred by external forces.
When asked about being compliant with incoming regulations, lead developer of Komodo, JL777 stated, “dICO gives everyone a choice. If they want to be compliant, they can. It is up to the dICO host, we just provide the flexible technology. I want everyone to have the choice to obey what the masters in China (or wherever) declare or not. We are headed toward a world where there is no choice. Such conditions without freedom are called…?”
Adding “Let everyone else scramble to make a 100% compliant system to that. I will make a system that can be made compliant, if desired, or not, if desired”
If you wish to find out more about Komodo, including new information such as their recent partnership with Monaize, head to komodoplatform.com.
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