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Initial Coin Offerings Draw Predominantly Gambling Companies for Crowdfunding

It is a known fact that Initial Coin Offerings are organized initiatives which enjoy a lot of interest in the recent months and many people feel like they are making a step into the better future by participating in such. It has been recently reported that man gambling entities participate in such activities on a regular basis and they are one of the most prominent forces in the initial coin offering market as a whole. This has been confirmed as a fact by Credit Suisse Bank in their most recent report which featured information about the whole industry and the habits of its entities.

For the people well-acquainted with ICOs it is a known fact that their very nature pretty much resembles gambling, as the participants place a certain amount of money with the hopes that they benefit from the final product which is going to be developed. However, there are some occasions in which the said development does not take place because there are not enough supporters of the idea or other circumstances get in the way of making it a reality. This is when the true gambling feature of ICOs comes to the surface.

In the recent months more and more gambling and gaming companies are interested in such crowdfundings and the opportunities for development they provide. They are followed closely by projects located in the infrastructure and development sector. The high popularity of ICOs progresses hand in hand with the development of digital coins and the wide variety of cryptocurrencies, as they are the main fuel of the fundraising events.

Crowdfundings on a New Level

Ever since their very beginning last year, ICOs develop and become better with every next organized offering. A significant boost to the new and improved version of traditional initial public offerings was the fact that many well-known names in the entertainment industry have backed the sector and promoted the modern fundraising method.

In its report, the Switzerland-based bank Credit Suisse stated that a large number of gambling companies opt for participating in such organized fundings. The experts behind the report state that the popularity of these crowdfundings is very high, especially in the tech field. This leads to the concerning possibility of over-capitalization which is a warning expressed in the report as well. As it could be recalled, in December 2017 following an estimation of the market performed by fintech analytics provider Autonomous NEXT, it became known that ICOs have surged over $4 billion.

One of the clear examples of gambling companies maintaining their strong positions in the digital fundraising market is the popular ICO aiming to amass capital for building a floating cryptocurrency casino in Macau. The ultimate goal which is expected to be reached amounts to some $500 million. The report further discloses the potential reasons why virtual currency is preferred for such crowdfundings, and one of them is the significant level of anonymity which comes with digital currencies and the advanced blockchain technology. This is precisely the reason why back in 2017 governments of China and South Korea realized the potentially criminal possibilities which ICOs give to the people and opted for banning the practice.

 Author: Harrison Young

Harrison Young is an experienced writer, who started his career almost 8 years ago. Prior to joining our team at CasinoGamesPro, he worked as an editor for a small magazine.