Butcher was speaking at the BlockShow Berlin 2018, which concluded recently and was attended by several industry leaders, including Cryptovest.
“Investing in initial coin offerings is a minefield, it’s incredibly complex even for people who are sophisticated investors,” said Butcher. Scams are taking in even knowledgeable and experienced investors, and the media are still trying to figure out where the hidden dangers lie.
“Trust is being denigrated and being destroyed,” said Butcher, with 80 ICOs being fraudulent this year alone - complete stolen white papers, identity theft, a massive problem. This betrayal of trust is one of the biggest challenges of the crypto ecosystem.
Can we leave it up to the media and regulators to dig out and end the disinformation and fraudulent claims? Butcher believes the crypto community - owners, investors, need to reinvigorate the trust, and watch out for the scams. Those scams are threatening the new industry, and the democratic underpinnings of blockchain transactions.
“If nobody trusts what is going on, you do not have an industry,” said Butcher.
He believes the crypto space needs more education, understanding how everything works - and demand real explanations of how systems work. There is not enough transparency in crypto media, and there must be a demand for media that does not blur editorial content with advertising.
Butcher discouraged attempts to pay for editorial content, so the media can focus on trusted content, and increase trust.
As for governments, they have already taken interest in the sector. But we have to remember that in capitalism, unequal outcomes are inevitable, and no government can interfere. But the public must believe that the winners are not playing with loaded dice, and believe in the system, Butcher explained. Else, participants in an unfair system would rebel.
If blockchain and crypto projects cannot be trusted, the public will switch back to the traditional systems. Crypto is a trustless world in the technological level, but paradoxically needs an element of trust in its participants, said Butcher. He believes all industry participants need to make more discerning decisions and build trust in the processes and projects.