San Francisco News Desk

Ethereum creator Vitalik Buterin along with Jason Teutsch, creator of TrueBit published a whitepaper outlining a concept they're calling "interactive coin offerings".It's purpose is to address the most complex issue in the world of cryptocurrency: price evaluations of a new coin.This comes towards the end of a year when countless ICO's with completely worthless tokens sucked in millions of dollars with expensive marketing campaigns hyping up their new coin, simply to collapse weeks later.The solution they propose comes in two parts.First - no limits can be set on the amount of money an ICO raises. While at first that doesn't sound like a way to clamp down on someone using an ICO as a money-grab, it addresses a problem with human nature. FOMA - fear of missing out. One of the methods ICO's use to get lots of money fast is making people feel like their new coin is going to be huge, but once they've raised $50 million - the sale is going to be over - so you better act fast!This concept addresses another issue as well, "Whales" (large investors) buying up a huge portion of the limited supply.Second - the boldest idea - allowing people to pull out of an ICO and get their money back. “Potential buyers may enter and exit the crowd sale based on behaviors of other buyers, and in doing so tend the valuation towards a market equilibrium.”This second step would require the first step to be implemented, as this would mean each ICO would have a date range to buy in, or pull out, instead of a market cap. It's during this period people can buy in, or change their mind.Obviously, once the new currency goes live you could no longer pull out. This would not be a way to ditch a coin that's failing and get your original investment back.You can read Buterin and Teutsch's full whitepaper here. -------