A recent Forbes post, written by Jeff Kauflin, questioned the whereabouts of funds raised through ICOs.
Kauflin went into the details of examples of projects that have raised funds through ICOs and failed to discuss how the funds actually made a difference.
To start with, Jeff Kauflin gave the example of MobileGo.
MobileGo’s mission was to become a crypto platform that focused on video games and fantasy sports. It turned out being one of largest ICOs in 2017, as it raised almost $53 million.
The brothers behind this project, Sergey and Maxim Sholom, ultimately decided to refrain from cryptos in their project, which is deceiving given that investors only gave the money into their project for that sole reason.
Then Jeff Kauflin moved on to the example of the NXT token, which was a success given its “383953.58 percent return on each NXT token,” as NewsBTC put it. NXT supposedly focused on a blockchain-as-a-service platform, which they’ve stuck to, to date.
The Godfather of the ICO movement — Ethereum (ETH), which sold its tokens at a price of $0.31 each and gained a significant return on investment regardless of the current price or all-time high.
Kauflin also went as far as analyzing 10 different projects that have been recently launched to question the whereabouts of the funds raised through ICOs. While some ICOs seem to have used the funds wisely, others either got rid of them or have them stored, which defeats the purpose, given that it was raised for the project to begin with.
Since the nature of ICOs lacks regulatory authorities and the need to disclose financial statements, no one will know what will happen to collected funds. By using the W12 Protocol instead, the investors will be able to look into the inner workings of the ICOs. The W12 protocol consists of templates for smart contracts and a network of oracles, which monitor the implementation of roadmap phases of projects placed on the platform, as that is the only way the project will receive the money it manages to raise through crowdfunding.