- Please introduce yourself! Why are you passionate about this topic?
Yael Tamar, Founder of TopofBlockchain, marketing consulting form for blockchain and cryptocurrency industries, as well as the COO for VeganNation, a global decentralized blockchain-based ecosystem for vegans complete with own currency, VeganCoin.
- What value do you see in cryptocurrencies? What dangers?
One important value is the ability to transfer money globally without exuberant fees, exchange rates, delays and other limitations.
Another is the ability to create new interesting business models. That is a possibility for a type of cryptocurrency called Utility tokens. In this scenario, tokens are used to encentivized members of the ecosystem.
The angers include of course money laundering, terrorist activities, fraud, as well as theft of assets because there are no adequate solutions protecting crypto assets at the moment.
- What are the ways that people can get themselves into trouble? From a risk approach? From a regulatory approach?
Investors should be mindful of not diversifying risk and overinvesting into cryptocurrencies. In addition, it is very important to protect their investment and ensure that their private wallet keys never get into the thieves’ hands.
- Why do cryptocurrencies enable a way for criminals to scam people?
There have been many cases of ICOs that were not based on any solid business plan or did not have technologies behind them and still managed to raise a lot of funds due to the hype. Because of the lack of regulation, the founders of these ICOs were able to get away with it. In the present times, as ICOs are becoming more regulated, the opportunities for scamming with cryptocurrencies are reduced and hopefully will totally diminish in the future and we will see much healthier, more developed and solid ICOs in the marker.
- What suggestions do you have for individuals considering participating ICOs, to avoid regulatory dangers and scams?
Just like in any startup investment, the ICO investors need to:
- Research who the founders are, what their background is and whether they are experienced entrepreneurs
- Look closely into the business model of the company, it’s use of proceeds, development plan, etc.
- Make sure that blockchain is an inherent part of the businesses rather than something that was added just to raise funds.