Regulation is good for projects like Tratok

There has recently been a lot of buzz generated in recent weeks concerning regulation of Cryptocurrencies and whether such an eventuality is good or bad for the concept. The team behind Tratok have thus far avoided making comments on such as we believe our efforts are best spent on ensuring that we provide the best possible solutions to the existing problems we wish to address in the Travel and Tourism sector.

 

However, after receiving many enquiries on how we feel this may affect the project and our visions, we have decided to publicly take a stance on the issue. We believe that regulation of the industry is a positive thing. It helps separate the illusions and magic beans from the potential growth engines that can feasibly make a difference with this new disruptive technology.

 

There are a few points that need to be clarified. Towards the last few months of 2017, the world caught cryptomania. This effect created a rush as many people wanted to try and get rich quick by speculating that they could buy different cryptocurrencies and sell them a short while later for a substantially out of the ordinary return on original investment. In short, many people jumped in with a lack of understanding based on their fear of missing out on what many saw as the next gold rush. Naturally once so many people rushed in blindly, as has been the case since the dawn of time, there will be those who try to take advantage. No doubt many of you have come across a multitude of new projects that are filled with promises of doing great things. Unfortunately, a lot of these projects are outright dangerous. The majority are deceptive and/or set out goals which are unachievable.

 

In many cases, you come across a team claiming that they are partnered with global brands such as Google, CNN etc… simply because they are mentioned in a random article on one of these site’s countless pages. This is intentional misinformation with the purpose of misleading target investors. Such enterprises use this information to falsely persuade potential backers into believing that they have stronger backing than in reality with the result that many fall victim to these false advertisements and jump behind them. You can understand the appeal to an unsophisticated stakeholder. It would seem very wise to support a small company that appears to have formed strategic partnerships with some of the world’s largest brands. If the smart money is backing them, it must be a great investment, right?  Unfortunately, the majority of these projects have no relationship, endorsement or affiliation with those who they claim to be their business partners. The fact remains that they wish to mislead people and the reason is obvious. To take their hard earned money. Regulation is needed to prevent cons like this and protect investors from being scammed.

 

At the same time you have projects out there are beautiful ideas on paper but unfortunately, have no chance of success.  The people behind these projects may have good intentions but unfortunately, they lack the expertise and skill sets required to accomplish their goals and solve the problems that they wish to address. Blockchain is still in its infancy and many challenges lie ahead which will not be easy to overcome. Only a professional and experienced team with industry connections and a thorough understanding can hope to succeed. Think back to the dot com crash and how many companies survived once the mania ended….

Before considering throwing your support behind a new project, consider the following. If these criteria are not met, then the chances of any success are greatly diminished. We wish to clarify these criteria as we want to make it clear that we are not simply downgrading most of the industry but we are thinking objectively about why so many are doomed to failure.

 

  1. How many of these teams have invested their own capital and time into conducting feasibility studies with industry experts to see if the project makes financial sense and if it can add value?

  2. How many of these teams have sat down and captured the requirements of all of the stakeholders so that from day one they can already set up a framework and understand the most effective way to lay the foundation to solve these problems and any future complications that might arise?

  3. Look at the team composition. Do the profiles say things like industry expert, or do they actually state where these people have worked, what they have achieved, the size of the revenues generated? If people are hiding backgrounds or being brief with details, there is a reason for it.

  4. Do the team members possess the necessary connections in the industry to facilitate the project’s goals? Can they open the right doors?

  5. Does the team have a risk management model which has been used to stress test the industry so that it can form contingency plans for worst-case scenarios? E.g. A recession.

  6. Does the team have a plan to ensure wider spread adoption of its products?

  7. Are the team’s fortunes tied to the success of the project? Is there a safety net to simply stop them dumping their token on investors and then not caring anymore?

  8. Would you use the product?

 

It is important to understand that whether a project is doomed to fail either because of dishonesty or disillusion, the ones hurt are the backers. As they get hurt, they get put off the idea of the technology and it harms projects with potential. The crooks do not care, they wish to simply make fast money and then get out and this damages the industry. Therefore we believe a degree of regulation is needed to protect the industry and ensure that projects with chances to succeed and change their sectors for the better have a chance to succeed. The Tratok team will always stand behind correct business practices and put stakeholder experience at the top of its objectives. We have made our position clear and will no longer comment on the market.