Big Bank of ICO Tragedy

"If you're stupid enough to get crypto money, you pay the price for a day."
That promise belongs to JP Morgan Chase CEO Jamie Dimon. On the other hand, if we do not say Mr. Dimon is not a crypto money fan, we will give incomplete information. The crypto-money financial sector is overcoming the decentralization principle in various ways, and big banks see it as a threat. Although everyone is talking about the most bitcoin, it is thought that ICOs are the biggest threat to Wall Street banks. Because many startups like LiveEdu are organizing ICO campaigns to collect investment from easy roads.

IPOs where promising companies are open to the public and stocks are sold and invested are always under the supervision of big banks. On a price-based increase, the bank earns a profit from the sale of shares. Even if there is no price increase, the bank earns profit from the contracting process. In other words, the bank can get a huge profit when it comes to gigantic startups like Facebook and Twitter. What happens to more startup ICO campaigns like LiveEdu?

The banks were the first to come to mind about supplying money for startups. But it has begun to change so much. At the end of the year, a total of $ 3.6 billion was invested through ICOs for a month . When we look at the year 2016, we see that this figure is only $ 96 million.

Even if this figure is unfavorable compared to 4.1 billion dollars collected in IPOs in only the third quarter of 2017 in the US, the existence of a major change can not be denied. Last year the number of IPOs and the amount invested in IPOs decreased. The ICOs exploded in full.

The traditional banking system established by Wall Street is under threat as long as the recruitment phase and the more professional Startups are organized by ICO. It is quite probable that we will see the nice Mr. Dimons who voiced that they are against ICOs and crypto paralysis in the future.