The Ban on ICOs is Temporary: LinkedIn Co-founder Eric Ly
Co-founder of LinkedIn Eric Ly considers the ban on advertising Initial Coin Offering (ICOs) a temporary occurrence. He’s convinced that the ban of the ICO advertisement in search engines and social media is not permanent. Recently, the casinopånett.eu reported that co-founder of LinkedIn spoke to CoinTelegraph on different issues, and one of the issues was about the ban on ICO ads.
Evidently, one after another, the social media platforms, including Twitter and Facebook have also banned ICO ads. This is because, says Eric Ly, the ban is implemented on protective measures, and it is going to be a temporary phenomenon that the companies have considered in order to stop getting a decree from the SEC (Securities and Exchange Commission).
As the regulatory body is investigating the assertions of fraud and trying to know the cryptocurrency industry is better as a whole, Ly claims that many firms have already received the decree from the SEC.
Also, he feels that the ban on ICO is temporary. New websites depend on advertising income to make profit and survive. It isn’t wise to execute a complete ban on an advertisement from a new and developing industry long-term.
A standard question that many businesses want to know is: when will the ban be lifted? The simple answer that the Ly said is that it will be lifted when regulatory clarifications are clear and when the SEC completes its investigations.
LinkedIn and cryptocurrency ads
Eric Ly was a co-founder of LinkedIn, but he left the company in 2006 to follow other projects. Rightfully so, he doesn’t want to talk much about the decision-making of LinkedIn regarding allowing ICO ads to run without a brake. But, he also said, he will not be surprised if the company followed suit for the same defensive reasons.
The new project Eric Ly has started that can help bring trust to the ICO space:
The core issue with ICOs is trust, which Ly is building towards. The accusation of mismanagement of funds, fraud, and the consequent loss of trust are some of the reasons that made social media networks ban ICO ads in the first place.
Ly is working on bringing clarity with a platform that establishes status rooted on different metrics. It is a status management system that cannot be modified or changed by the company itself.
Without going into certain technical details, Ly’s process will give each company a status score based on a variety of factors, including transactions histories, the blockchain, and disputes. It can help investors establish quickly whether or not they can believe a provided token sale, based on the status of the company launching the ICO.
However, there are various other factors need to be considered, such as how the ranking system works, and how disagreements will be managed. Ly says options are available, but the objective will be an easy one, which is nothing but bringing the clarity and transparency around ICOs.
It’s difficult to understand the circumstances – only time will decide if Ly is correct about ICO ads, and whether the problem is temporary or not. One thing for certain is that these advertisements will not appear unless a major change in the regulatory space occurs, including probable parameters included in the ICO process.