Adam Back recently took to Twitter with controversial comments about several of the industry’s biggest crypto projects, including Ethereum (ETH), Cardano (ADA), Ripple (XRP), and Stellar (XML). His tweets placed these projects in the same category as a number of honest scams, which he believes were organized as “premieres.”

We interviewed Beck to clarify his position on this matter, and we began by asking him how he thinks Satoshi Nakamoto actually represents over a million Bitcoins. Buck replied that “Bitcoin has no initial value,” adding that he considers Patoche’s research “very speculative.” However, he agreed that Satoshi was able to collect large amounts of Bitcoin in the early days when the mining problems were minor:

“Yes, I agree with you. Even in Bitcoin’s first year of existence, around 2.6 million coins would be mined for 50 bitcoins per block. So it was likely that more than 80% of other miners, in 2009 there were a lot of Miners clearly. ”

However, it is still believed that there is a difference between mining at very low cost and upstream mining. For most ICO’s, he noted, “It is not known whether Bitcoin will be launched and will have value. It has not been listed on the exchange for over a year.” While the same could be said for many ICO coins, Back, focusing on what he sees As the unscrupulous nature of the ICO. In his opinion, the main goal of an ICO is to enrich its creators – which, in his opinion, most people would consider unethical …

Beck also noted that ICOs are offering investors far fewer remedies. He explained:

“There are no investor rights here, no financial oversight, so I don’t think you can really claim what money is being spent on. Given the temptation and perceived motivation, it is likely that much of it will be lost due to the instinct and personal enrichment of the founders, promoters, etc., when it is done Spend the money, they move to the next currency. ”

High school architecture with $ 1 billion in marketing
We asked Beck if he really believed that no major ICO would get attention. With some hesitation, he admits that some of them might fund useful research. It is still believed that such a use of funds is generally ineffective. He said:

“ Obviously, there are exceptions, and some altcoin-funded ICOs or initial studies or grants to qualified researchers, but capital efficiency, I think, is about 100 times less efficient at funneling money into secure and reliable protocols than lean startups. .. ”

The Hashcash creator believes that most of the best projects with market value are nothing more than school projects with a billion dollar marketing budget:

“I think we can assume incentives mean something, so that’s an option to pursue money – if they have instant cash and no oversight, they spend a lot on marketing and manipulating the prices of engineering equipment.”

Back has also suggested that ICO projects are left with second-tier engineers, since most of the large blockchain developers “won’t essentially work with the ICO.”

Source: CoinTelegraph