With the recent Initial Coin Offering (ICO) craze, one cannot stop
thinking if all those tokens are really required for the applications or
if it’s just a way to raise capital (crowdfund).
While I appreaciate new ways of funding Internet protocols and
decentralized applications, there are drawback of doing it this way, one
of the main drawbacks is increased transaction costs, especially if the
tokens don’t come with their own network. Also, if the software is
open-source, what blocks people from taking the code and just removing
the token and either getting rid of it completely or just replacing it
with the network’s native currency (like Ethereum or Bitcoin, depending
on the underlying network).
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