Half of ICOs dies within four months after token sales finalized

in cryptocurrency •  2 years ago 

Hello, crypto pirates! Let's talk about statistics and magically disappeared ICO-projects today.

So, only 44% of the 2,390 projects that raised money on ICO in 2017, continue to be active after 120 days of the token sale (according to the Boston College research).

The other 56% of the projects magically disappeared, and the destiny of the collected funds is unknown.¯ \ _ (ツ) _ / ¯

If you look at the dynamics of the ICO market, you will see that the number of projects increases, but only a few leaders raise money. Others either don`t raise funds or receive minimal amounts.
On the median chart zeros from March to May mean that in spring 2018, more than half of the projects did not raise anything (the median is the middle of the list from top to down)!

Source: https://www.bloomberg.com/news/articles/2018-07-09/half-of-icos-die-within-four-months-after-token-sales-finalized

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This makes think about the long-term holding only of the top-projects tokens.

But how to choose, what crypto-treasures you need to collect to fill the chest?

  1. Do not believe experts only, check all by yourself! Ian Balina or Supomen should not be the final opinion for you.
  2. I like the approach which analysts use in investment funds. They ask a number of questions for ICO projects to find the "red flags":
    • Why did team decide that they need ICO? What did they do before?
    • Why does your business model need decentralization?
    • What is the use of the token? Why users, developers will use token?
    • Do you have any competitors that are centralized, and if so, what is stopping them from doing the same thing?
    • Your fully diluted market capitalization is $X million. Do you think you can be a $X billion company to achieve investors a 10x return?
    • Your soft-cap X million dollars, and hard-cap XX. If you can develop a product for X million dollars, then what are you going to do with X times more money?
    • Will your tokens be locked? If yes - for how long?
    • How much did you collect on a private sale, how much are you going to collect on a public sale and why did you distribute the share that way?

So, guys, you should look at the ratings, filter hype, ask questions and don’t be afraid to hold interesting projects for a long time (Hi, Tezos!). And then you’ll get rich!

Read my previous article: Hopes and fears about big money in crypto
My Telegram channel: Captain Hook Crypto Tales

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It makes sense Icos are very very risky and the can also reward you the most ;)
So do your own research andbe careful!

@amahovac93 hey, what are your red flags?

I was hacked!
Lukilcy i returned my account

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A lot of ICO's are not that transparent, which of course should be a red flag on its own.

Anyway, great and easy visually article!

Of the few people here reading this comment, are you invested in any and why?

Thank you for your good feedback! :)
ICO is really very risky, but sometimes it can be interesting for investors. Pchain was interesting after the first listings. But there are really not many such projects

excellent post, ild recommend anyone new and even experienced to read over your article, great research really

@renej Thank you!

This is some good analysis results. Alyhough it is quite clear that most of the ICO's are fake business.
Following you for more of this ! Maybe you also like my recent contest: https://steemit.com/bitcoin/@coinsquad/bitcoin-price-the-coinsquad-cryptoprediction-contest-round-11-or-win-all-sbd-from-this-post

@cryptohook Investing in ICO is becoming very risky now a days..

@kmayegaindia When did you invest in ICO last time?

Hello friend, all your publications seem wonderful and quite interesting! I am a new user in steem, I invite you to go through my blog and see my content!

Very a really interesting post! Investing in cryptos and particularly ICOs comes with a high risk. Selecting good ICOs to invest in is difficult and almost a full-time gig. Let alone transacting and exchanging these coins can also become difficult. That is why we developed a platform, Blockbasis, where users can send and receive cryptocurrencies like Bitcoin, Ethereum and more with just an email address. Besides sending and receiving via email, users can exchange cryptocurrency on our DEX.

great article !