Wales however did say that blockchain technology will “be with us for some time to come.”
Initial coin offerings (ICOs) — one of the fastest-growing ways for cryptocurrency start-ups to raise money — are “absolute scams,” Wikipedia founder Jimmy Wales told CNBC.
ICOs are a way for start-ups to raise money by issuing a new cryptocoin, while users pay them bitcoin or ethereum. It’s similar to crowdfunding but with digital money. This year, start-ups have raised $2.4 billion from ICOs, according to data website Coindschedule.com
Wales however cautioned investors from participating in ICOs calling them a scam.
Source/More: ICO or initial coin offerings are an ‘absolute scam’: Wikipedia’s Jimmy Wales