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Unicoin hopes to launch on exchanges later this year and focuses on creating digital assets backed by investment portfolio wealth.
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Own this piece of crypto history
Unicoin chief investment officer Alex Dominguez recently joined Cointelegraph for an interview at the Blockchain Futurist Conference to share his thoughts on the problems plaguing a vast majority of newly launched crypto projects.
According to Dominguez, Unicoin is “trying to solve the [number] of failures.” in the industry. The executive gave a troubling example of an ongoing problem affecting many crypto projects:
“Even if you go on Binance, the last 30 coins they’ve listed have all failed 30 out of 30. And you’re talking about the biggest exchange in the world, and a lot of the reasons why these coins fail is because they don’t have any muscle behind them.”
Dominguez continued by explaining that most crypto projects lack real profitability models and robust marketing. According to him, such projects tend to attract large sums of venture capital that they burn through without tangible results in project development.
To tackle these challenges, Unicoin offers pre-initial public investment opportunities for investors all around the globe. The company hosts a show called Unicorn Hunters, which identifies and showcases startup companies that anyone tuning in can invest in. The one notable exception to this is United States residents, who must be accredited investors to participate in these opportunities.
Related: VC firms are slowing down crypto investments for a ‘nuanced reason’ — Venture capitalist.
Crypto like the stock market
Dominguez likened crypto to the stock market and told Cointelegraph that Web3 projects must follow a similar formula to publicly traded companies to be viable enterprises:
“You need to be profitable, you need to have a business plan, you need to be self-sufficient. You can’t rely on venture capital alone to survive 10, 20, 30 years from now.”
The most obvious example of what Dominguez is talking about is the rise of memecoins, which typically have no real-world utility, underlying use case, or sustainable business plans for the tokens.
Although some meme tokens like Dogecoin (DOGE) and Shiba Inu (SHIB) continue to have lasting appeal, most experience sharp declines of 95% or more due to a lack of long-term viability and business planning.
Magazine: Pudgy Penguins GIFs top 10B views, CEO sets sights on Disney, Hello Kitty: NFT Creator.
This article first appeared at Cointelegraph.com News
