Last week, the Blockchain Week conference took place in London. The conference focused on blockchain technology and crypto-currencies. One of the participants of the conference was Bobby Lee.
He is chief executive of BTCC, which used to be the second largest Bitcoin exchange in the world. Also he is known as a board member of the Bitcoin Foundation. He told the participants of the event how the ban by the Chinese authorities of cryptocurrency trading affected his business.
Bobby Lee founded BTCC in 2011 in Shanghai. Last September, the Chinese authorities forced BTCC to stop work. The company changed its line of business: now it specializes in the bitcoin mining and electronic wallets. The staff of its Shanghai headquarters has a hundred people.
“Unfortunately I’m very conservative, I’m very old school. I don’t touch altcoins, I don’t touch ICOs. It’s just too risky. It just doesn’t make sense to invest in those guys. Maybe I’ll change my mind next month, next year, I don’t know.”, said Bobby Lee in his interview to Business Insider.
At the same time, Lee called trusted cryptocurrencies, which, in his opinion, deserve attention.
“I only recognise and endorse: bitcoin, litecoin, ethereum, bitcoin cash. Anything outside of that basket I wouldn’t touch myself — I don’t touch myself, I wouldn’t touch myself, and I wouldn’t endorse or recommend for anyone else to touch.”
According to Lee, there are too many fraudulent schemes among ICO. Number of such projects will only grow. The most fears are caused by “pump-and-dump” schemes.
In 2017 new ICO projects collected more than $ 4 billion. According to CoinMarketCap.com, currently there are more than 1.400 altcoins are circulating. But in so doing, many cryptocurrency projects raise doubts.
A negative example for many, watching the development of the sector, was the history of the startup Tezos. The developers of this project raised $ 232 million last year within the framework of ICO. But the ICO had some serious difficulties such as internal conflicts and legal dispute . Eventually, the project organizers announced to investors that they would not be refunded.
Lee said to Business Insider: “Certainly, buyers beware. This technology is a double-edged sword. It can enable good things but it can also enable bad things if you have a criminal mindset. That’s true of anything.”
According to Bobby Lee, being “almost libertarian at heart,” he nonetheless supported certain regulations in the cryptocurrency market.
Previously, Bobby’s brother, Charlie Lee, Lightcoin founder, also expressed concerns about fraud related to digital currencies. He said that the level of fraud is unacceptably high in the sense that people enter this market only in order to make easy and fast money.