When I was starting to get involved in crypto-currency, one of its features that attracts me is the privacy it gives you. Now with all those KYC being required in exchanges and in ICOs and other platforms, some people are beginning to be hesitant in their activities in crypto.
This was my first impression of KYC and most probably, majority of crypto users initially think of it this way too. Data leaks may occur. Private information are at risk. Investors, as a result, stay away from ICOs that require KYC.
However, there is an increasing number of ICOs that follow KYC policy which means many investors invest less. This could be one cause of the bloodbath.