There is always a certain risk associated with getting involved in cryptocurrency ICOs. Not all of these projects will be successful, and others may seem to be only half-finished at best. The upcoming Bancor ICO is raising a lot of questions from the Ethereum community. Moreover, it appears there is a fake website impersonating the upcoming ICO for this project. No one is saying Bancor is a scam, but there are some things worth taking into consideration.
Ethereum Community Seems Divided over Bancor ICO
There has been a significant influx of cryptocurrency ICOs hosted on the Ethereum blockchain over the past few months. With so many different projects going on, it is only normal people with coding knowledge will try to look at different projects in-depth. It appears there are some concerns over the upcoming Bancor ICO and how the project itself has been created by the developers.
To be more specific, the Bancor developers recently demoed a version of their protocol. In this demo, the team claims we can find over 60,000 lines of code. Do keep in mind this number also includes the web stack as well, which does make it seem as if there is a lot more code. However, the team strives to minimize the contracts in the core application to a minimum, which is only to be expected. Emi Gun Sirer feels there is a big flaw in this regard, as his recent tweet indicates the Bancor core only contains 40 lines of code.
You shouldn't. And I was wrong, the core of Bancor isn't 200 lines, but about 40 lines of code.
— Emin Gün Sirer (@el33th4xor) June 10, 2017
To put this into perspective, there are concerns over whether or not one could “game” the business model provided by Bancor. It is highly doubtful this will be the case, although the function and current state of its price peg are publicly known. It is good to see people openly voicing their concern about a project which will perhaps raise several millions of dollars in the coming weeks. It does not appear these concerns will affect the way Bancor works, although only time will tell how things will play out in the long run.
Another interesting post on Reddit highlights how one could effectively develop a similar platform by using Ether as the reserve currency, rather than creating a new native token. It appears doing so would certainly be possible, yet using a native token makes a lot of sense as well. Should this token fail to gain mainstream traction it is still possible the reserve ratio can be raised, ensuring it is backed by more Ether. This is an interesting concept, and it goes to show this project will be quite a valuable “experiment,” to say the least.
Once again, none of these concerns indicate there is something wrong with Bancor by any means. It does highlight people are genuinely interested in this project and its inner workings. That is a positive sign, although it does not automatically guarantee success for the project either. The Bancor team will have a lot to live up to, and thousands of people will be scrutinizing this project until – and even after – it launches. Innovative concepts often attract some concern, which is a positive development overall.
One of the bigger concerns Ethereum users should have is the fake Bancor crowdsale website which is making the rounds. The fake website mentions how the fundraiser is already live, even though the ICO itself has yet to begin. It is quite worrisome to see ICO scam sites show up already, as this may slowly become a new norm affecting hundreds of future cryptocurrency ICOs in the future.
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