Kai-Fu Lee: ICO Is The Biggest Bubble And To Burst In Next 6-36 Months
Kai-Fu Lee, founder of Sinovation Venture and a computer scientist who used to serve Microsoft and Google, voices his opinion on the current Artificial Intelligence (AI) and blockchain boom in the 2018 World Economic Forum,
“The AI bubble will burst at the end of this year with some companies going bankrupt for running out of money. This time I am very concerned actually not just the AI, I think ICOs, ICOs are the biggest bubble. That burst may cause some AI bubbles to burst, and influence even bring down some tech companies. So I think individual investors should be careful, as the next 6 – 36 months might see the bubble burst.”
As blockchain and cryptocurrency frenzy get hotter in China, many token scams are revealed but new ICO scams or token pyramid schemes are finding their way in. Having had enough of it, Chinese bitcoiners are calling on media engaging in bitcoin and blockchain to set up special Columns or bulletin board to disclose those fake news and ICO scams.
He Yi, founder of Binance, posted a weibo revealing an ICO scam and told how to tell a scam,
- Cash accepted for investment
- Guaranteed great yields
- Multi-tier marketing like pyramid schemes
- In the name of relevant department or organization
Du Jun, co-founder of Huobi and Node Capital, also gave some reminder on features of token scams. If it meets one or more following features, it can be deemed as a token scam trap.
- It is claimed to be listed on major exchanges like Huobi, Binance, Okex in its whitepaper. – -Several major exchanges show disgust at this and announce that no project is allowed to release listing information privately ahead of announcement from the exchange.
- There are profiles or images of Li Lin-Leon (CEO of Huobi), Xu Mingxing (founder of Okcoin) or Du Jun (co-founder of Huobi) in its whitepaper. –All of them have publicly stated that they did not participate in any project ICO and no personal portrait is allowed for any project.
- A Chinese project team but members are all foreigners (Chinese with English name excluded)
- Guaranteed yields
- No well-known or familiar institutional investor is mentioned in its whitepaper. –The involvement of Institutional investor does not mean that the project must be a success, but the team of which can help filter out many air projects.
PS: 95% of the current blockchain projects will fail (worthless), it is recommended to have a good master of blockchain-related knowledge and manage risk control, to be a qualified investor.
Xue Manzi, a famous angel investor in China, reposted it and commented:
“It is a timely post. Blockchain represents the future, but today everyone is blundering and rush to issue coin. Most of them turn out to be scams. Hold your wallet tight and be careful.”