For the first time ever, Blockchain industries, including Korea University's Cryptocurrency Research Center, the Korea Blockchain Industry Promotion Association (KBIPA), and the Korea Blockchain Startup Association, and three academic groups announced guidelines for the Initial Exchange Offering (IEO) at the Future Convergence Technology Center at Korea University on November 1.
A hot but murky cryptocurrency market, investors with deep pockets fork over hundreds of millions of won without asking about or arguing over any coin explanations. The investment environment is one in which investors are jubilant when a coin price rises, but become enraged when the price collapses, rushing to the prosecution to demand litigation. Often, though it is too much for prosecutors to investigate all the swindlers who get caught.
Under these circumstances, should we blame the prosecutors? Should we blame the investors for being cheated so easily? When a small group of people came to me and indicated their plans to make IEO guidelines, I thought at first that they were getting in over their heads. But I do applaud their bravery of taking the first step to prevent reckless investment, even though it likely won’t completely stabilize a chaotic market and eliminate fraud.
We took painstaking efforts while also learning in the process. In order to polish this diamond in the rough, we will need a great deal of advice.
If the guidelines are too strict, it is unrealistic to think that will be accepted in the market. On the other hand, if they are too lenient, they will be irrelevant The IEO Guidelines will be supplemented continuously by feedback on a three-month basis.
By Prof. Kim Hyoung-joong, Head of Korea University's Cryptocurrency Research Center