The ICO widespread continues to expand throughout the world, PoW-issued crypto claim that the tokens issued through public funding aren’t right to be named bona fide decentralised backed by blockchain assets.
The argument between ICO issued utility tokens and proponents of ‘pure’ digital currencies still continues on. The former CEO of the BTCC exchange, Bobby Lee has recently spoke out about his opinions on the two classifications of digital assets and his soon to be released up and coming fintech news outlet.
Lee was attending the Crypto Finance Conference in California when he was discussing the matters and said:
“People, companies or investment firms can invest in Bitcoin and cryptocurrencies, which are native digital assets. And then there are things like tokens that are issued by groups, teams of projects that are supposed to back certain projects, certain development effort, certain applications. So those are more like securities, even though they call themselves utility tokens.”
As many of you will already know, tokens that are issued through an ICO are distributed by a central authority with a group that have the responsibility of said distribution of virtual assets.
With this in mind, Lee comes to the conclusion that the utility tokens aren’t decentrally spread out, with ICOs basically add insult to injury that is right at the heart of the hardcore ‘decentralists’.
Lee is one of the minds on the team by the original Bitcoin Foundation, and claims that the utility tokens can be frequently misclassified. He also believes that they should be likened to equity investments into a team and that they are “very different” from “native digital assets”.
The reporter interviewing Lee drove the conversation the co-founder of Ripple, Chris Larsen claiming that the the centralists and decentralists is like a ‘religious war’.
“Well, I think he has a bit of a bias on that front… Ripple has the reputation of being centralised even though some proponents claim that it is decentralised. So I do think that it is important because the world up until Bitcoin’s invention has never seen some that is digital that is also decentralised. In the real world, things are decentralised like water, air, gold, that’s decentralised. Whereas everything else is centralised, so in a digital world everything has been centralised up until Bitcoin.”
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