Why private launchpads and regulation could be what the crypto world needs right now.

A recent study found that nearly 80% of initial crypto offerings are scams. The study was performed by picking the ICOs that had a minimum market cap of $50M and were expected to go into active trading.

I gotta be honest. I came to the whole - blockchain, crypto, web3 - world kind of late. Well, later than most of my friends and family.


Though it seems almost mainstream at this point - with everyone and their momma having a Coinbase account thanks to relentless marketing efforts on the company's part and help from the general media apparatus - the idea of investing in digital tokens was not always on the minds of average folks here in the U.S and around the world.


Sure, there were those folks who got in on the ground floor of a lot of these, now popular, tokens like Shiba Inu (SHIB) and Ethereum (ETH). The early adopters. The first on the scene-ers.


These are the guys and gals who made 1000, 10,000% returns. The rest of us came along and purchased as much as we could in hopes of also making a little bit of change in the process. You know, "wet our beaks" a little.



An Altcoin here, and Altcoin there

Personally, I am no different. I took a more balanced approach to my crypto investing shenanigans though. I bought healthy amounts of the top coins. I went in deep on SHIB and lately, Apecoin (APE).


I felt it prudent to do the responsible thing and invest in coins that ( at least I think) have intrinsic value.


Like most crypto enthusiasts though, I found myself checking out newer, lesser-known tokens. The kind that launches with very little liquidity and embarks on the journey to make its way onto mainstream exchanges while creating wealth for those who supported the projects earlier.


These types of coins are typically found on platforms with strange names like Coinmooner and myoclonic seizure-inducing user interface designs to match.


So, I went down the rabbit hole of the crypto underworld. With my Memamask wallet on deck, I started buying a bunch of these newly-launched tokens in hopes of catching the next Dogecoin in its infancy. The results so far have been mixed.


RX for Web3

There are many interesting projects out there such as Astrospaces, Green Joker, Homerun, and a few others that I like. Like any other space, the quality (or lack thereof) of a project comes down to the type of people running the operation.


I think too many folks in the private investing space - and that is what this is - focus too heavily on the idea and hype around said idea and completely miss the most determinative factor around the idea: The people. The attitudes, relevant experience, and intentions of the folks trying to bring the project to life.


This is when I realized the potential of this new space: blockchain, web3, crypto, to help direct resources in a decentralized and democratized way to help entrepreneurs around the world build awesome new companies with innovative products and services with blockchain being the engine that drives innovation, web3 being the publicly soluble delivery system and crypto being the means by which funds are pulled together to allow all manner of folks to participate in the evolution of tech and humanity as a whole.





Controlled launches and more

There is a dark side to the world of crypto though. At least outside the safe spaces of Coinbase, Binance, and the other major exchanges.


Scams, untested entrepreneurs, failure of projects. These are occurrences that one who ventures into the shallower pools in the crypto space cannot avoid.


A recent study, based on publicly available information and sources, claims that nearly 80 percent of the initial coin offerings (ICO) are scams, and only a meager 8 percent of the floated ICOs manage to reach the trading stage on the various cryptocurrency exchanges. This is a depressing statistic.


The truth is, due to the general unregulated nature of the crypto space, most actors are bad ones. Or should I say the wild wild west nature of the space brings out the worst actors or rather folks' worst instincts?


Now, I believe that a lot of these system issues will eventually resolve themselves as large financial institutions take an interest in the crypto world. In fact, once large banks and pension funds start to buy into the space in a major way - since these firms tend to hold their assets for longer periods of time - this shift to mainstream crypto will bring greater stability to asset values.


Regulation on how many coins can be issued and laws around insider communications and token distribution will also go a long way to curb the rampant volatility associated with investing in digital assets.


Closed-circuit launchpads will also be useful in ensuring that quality tokens reach investors.


Here, let me explain: The way I see it, one of the biggest issues associated with investing in digital tokens is this phenomenon where folks who have greater buying power than most buy large amounts of newly-launched tokens with plans to dump all their tokens once ordinary folks buy into the project and drive up the value of the tokens.


These types of pump and dump schemes, though outlawed in the world of stocks, are commonplace in crypto.


Worst still, folks who engage in this type of behavior often have no idea what the project set out to do and couldn't care less for that matter.


I actually think this is the biggest issue in the crypto world at this point. One way participants in the space can curb this type of behavior is to build private communities around their projects.


By doing so, a project's team can create a space in which only folks who understand and are interested in a project long-term are invited to buy tokens- at least initially.