A troubling characteristic of ICOs is the explicit lack of accountability that token distributors have to maintain promises. As token holdings do not represent project ownership, deceitful entrepreneurs are emerging among legitimate projects as conmen and snake oil salesmen looking to earn quick riches. A frightening Reddit post on Sunday exposed GNation’s CEO and other executives as being exactly these sorts of individuals.
The premise behind GNation, the company that oversees development of the sister currencies GameCredits (GAME) and MobileGo (MGO), is quite exciting. Among other applications, the company promised to create a mobile application store that would offer e-sports wagering, huge developer incentives, and a flagship mobile MMO that would surely see huge popularity.