Ethereum News Update
Over the last year, initial coin offerings (ICOs) have become quite a phenomenon. And ETH prices have largely benefitted from this trend, since most ICOs take place on Ethereum’s platform.
However, ICOs are not without their faults. They have drawn a lot of criticism.
They may offer startups a new way to raise money, but it’s impossible to avoid the fact that ICOs are unregulated. There’s nothing to stop a company from riding off into the sunset with your money.
Most investors roll their eyes at the suggestion of more regulation, but in this case, more regulation might be justified. In fact, leading blockchain experts are co-operating with regulators in crafting the rules that will govern cryptocurrency markets.
That said, Vitalik Buterin has another idea.
The famous co-founder of Ethereum thinks ICO investors should help decide what happens with the money. The idea comes from Ethereum’s “decentralized autonomous organization” (DAO), which originally ended in absolute catastrophe.
(A glitch in the first DAO ever attempted allowed a hacker to steal $60.0 million. Understandably, very few people were willing to try a DAO after that fiasco.)
Ethereum Price Chart
However, a bold, new gaming startup called The Abyss is reviving the DAO concept. It plans to raise money through an ICO, while simultaneously binding itself to a decision-making tree with investors at the top. It is an audacious attempt to reform the ICO market.
“The intention is that the voters start off by giving the development team a reasonable and not-too-high monthly budget, and raise it over time as the team demonstrates its ability to competently execute with its existing budget,” Vitalik Buterin said in a blog post. (Source: “Explanation of DAICOs,” Ethereum Research, January 5, 2018.)
In other words, The Abyss can’t simply accept investors’ cash and disappear; investors can hit a self-destruct button on the ICO at any point, thus refunding themselves whatever’s left in the fundraising pot.
Ethereum prices fell in the last 24 hours, but I’ve never been more bullish. Vitalik Buterin has proven to be wise beyond his years. After all, it was Buterin who encouraged the Ethereum developer community to focus on tough problems rather than trivial pursuits. And look at the fruit that it’s bearing. We are seeing the Ethereum ecosystem grow and mature much faster than its peers.
As such, I continue to believe that ETH prices can reach our $1,500 Ethereum price forecast before the end of Q2.