Justin Bons, founder and CEO of Cyber Capital Europe, has sharply criticized the current financial model in the cryptocurrency market, which he believes is overly dominated by venture capitalists (VCs).
Bons argues that regulatory measures have effectively rendered initial coin offerings (ICOs) illegal, thereby concentrating early-stage investment opportunities in the hands of VCs and sidelining retail investors.
He compares this situation to a “boy’s club” of VCs, where stringent regulatory requirements such as KYC and AML processes create barriers for smaller investors.
“We need to bring ICOs back! Fundraising in crypto used to be democratized; anyone could participate on equal terms. Now, the market is dominated by predatory VCs instead! The culprit; regulators made ICOs illegal, as this gave the entire early-stage market over to VCs: “