Can Initial Crypto Offering replace IPOs: Eli Reifman?
By Space Coast Daily // May 10, 2022
The dynamic world of crypto is highly unpredictable to rely on for making transactions. There is no regulatory authority in place. It’s all about blockchain technology.
People have been asking a lot many questions about crypto. Will it be taxed? Will it be regulated? Will there be any centralization system put in place? Is it not about limited people guiding the fluctuations in cryptocurrency? Doesn’t it create a pyramid? And there are many other questions related to the future of crypto.
Most important these questions are can initial crypto offerings replace IPOs in future and help startups raise investment. Well, Eli Reifman is a veteran and has tried to answer such questions and clear the ambiguities. He delivered a talk and answered questions from the public. The event was hosted by startup grind in Tel Aviv.
Understanding crypto has been a challenging task and people.
Experts give different most of the time conflicting perspectives about the future of crypto. Likely is the perspective of Eli Reifman and it is quite unusual. Startups have been raising money through IPOs in the past. The question many entrepreneurs have been asking is that can crypto be used to raise funding. Is it a reliable source? Eli has answered unequivocally. He is of the view that crypto is the future.
Rather in answer to the question of regulation, he said that is the most democratic system people have ever had in history. People have a say in deciding whether they accept it as an alternative to currency. The money we are currently printing is fiat. Which in simpler terms means that people have developed a consensus on the value of the money currently circulating in our economies.
The consensus is disputed by the regulatory authority in place. In the case of cryptocurrency, we have a decentralized system. The people decide which currency to accept. There is some acceptance in the people related to bringing crypto into the streamlining of our economy. There are some restaurants in Japan where one can buy coffee and cake and pay in crypto.
So the idea is how the startups can use ICOs as an alternative to IPOs.
What will happen in an ICO? The companies can issue cryptocurrency to the investors and raise money in return for their startups. Blockchain technology is much more secure. There is no one regulating crypto. It is simply on acceptance of people and the blockchain technology which makes it work. Entrepreneurs are often concerned about the future of crypto.
The governments have not yet recognized to use of cryptocurrency. So, how will we make sure that the ICOs will prove beneficial for the startups? Eli Reifman has answered this question as well. He said the cryptocurrency is gaining acceptance among people if we look at the long run. For instance, Microsoft is accepting crypto for some of its products. Tesla is accepting bitcoin for their cars. Things are changing. When people will start trading on a large scale, the governments will have to accept and recognize crypto. The taxation reforms will be in place once it holds its ground.
The reason why people should opt for digital currency is because of its decentralized nature. It is not regulated or it couldn’t be manipulated by a monopolist. It fluctuates on the acceptance & rejection of people. Rather it is the most democratic form of currency. Another major concern among entrepreneurs is that the people who were the pioneers will have a prime position in the pyramid of power. Well, it has been the case in almost everything in human history. The one who gave the idea of the value of gold held a prime position.
Cryptocurrency has a lot to offer to startups. The ICOs are the future. The startups can issue digital (crypto) currency to raise funding. It will give the people control over the fate of currency. It is a great idea if implemented in the form it exists today. The segregated is a key aspect of its popularity. The people will decide the value of any currency rather than a central bank. They will get a direct say in valuing what they think is valuable.
The unusual narrative Eli Reifman has about the Crypto Economy is backed by strong arguments. He gives the reason to believe what he says. The ICOs will replace IPOs in the future and they have a lot to offer the startups. It will make the economic system more democratic and robust. It is fiat like the currencies we currently use. The value of the paper money is determined by the consensus among central banks. That is the consensus among people. Likewise, crypto is also fiat currency and once we reach a consensus among people regarding its value; it will be a breakthrough.