Disillusioned Token Investors Demand Real Talk About Risk

That's the growing complaint among investors who are passionate about blockchain technology but frustrated with a lack of tangible progress on professional risk management strategies across major token projects.

As Jobanputra pointed out, few projects that raised money in 2017 have proven the real value of their tokens by launching usable platforms.

According to Demirors, self-reporting could help reduce trepidation and uncertainty among token holders.

The token economy needs similar processes to soothe not only investors, but also regulators who have been increasingly looking askance at the industry.

Emerging platforms like the Brooklyn Project at ConsenSys and Messari, a startup founded by former CoinDesk CEO Ryan Selkis, are introducing much-desired crypto asset databases with information about token projects' resources and progress.

Investors want to make sure entrepreneurs are committed, so they may demand a lockup of tokens held in reserve.

Regardless of any single founder's personal holdings, token projects need to pay for salaries, taxes, legal fees, and a slew of other operating costs, so the funds need to have some liquidity.

"Whether it is a token or an equity deal, I look at what is the potential for that 10X return?".

If the tokens are basically reduced to a digitized equity club membership, with investors buying equity in order to get discounted tokens for a quick flip, that defeats the whole point.

Like many investors, Demirors demands high standards because she wants token projects to succeed.