Does cryptocurrency have a bad reputation because of misinformation? And how can we sift through the current media discourse and what’s real?
Unfortunately, the cryptocurrency market is full of "fake news." Often it’s a simple manipulation or rumors amplified by nativity, conformity, fear or ignorance.
ICOs have tried catching attention by issuing fake partnership news. For instance, we even witnessed a significant fabricated news event in early May, related to the May 7 SEC meeting on Ethereum and whether ETH is a security.
The whole market was discussing this, traders and investors began taking decisions trying to guess the potential outcome. The reality was far different. There were no mentions of such a hearing on the official SEC website nor from any individuals close to the commission.
This specific piece of fake news was only revealed as fake late in the evening of May 7. That’s the proof of this problem in the current market. We believe this is occurs as a result of a space lacking trusted and reliable sources of information.
These problems can be solved by leveraging the power of token economics, gamification and machine learning in a crowdsourced, information-sharing platform specifically for crypto traders and investors looking to receive trusted and reliable information on cryptocurrencies, tokens, and ICO projects. Individuals can participate in the data validation and collection process in an simple and gamified way.
As the information challenge plays out, in the larger cryptocurrency market we are going to see a massive consolidation of the market, driven by startups failing to find a market fit, struggling to solve big enough problems.
However, we believe that, leveraging the blockchain, startups that use token economics and incentives to solve existing problems, as well as problems being tackled by traditional industries, will be greater poised to survive the periods of declination. Blockchain is the future of the world’s technological and societal problems, but this adoption curve will not be smooth for all involved.