Analyst: 89% of ICOs are unprofitable, and IEO begin to repeat this trend



1XBET: 100% Welcome Bonus.
CLICK ON THE BANNER TO REGISTER And CLAIM BONUS INSTANTLY


Analyst: 89% of ICOs are unprofitable, and IEO begin to repeat this trend

Am Sure you can learn successful Blogging secrets through me, am also sure you can learn how to make money online with the help of my updates why not leave your email behind let me show you how.
Loading

Leading analyst of The Block, Larry Chermak, decided to analyze the profitability of ICO projects and found that at least 89% of them turned out to be unprofitable. Nevertheless, those that showed positive returns “won big.”

1 / It’s now obvious that ICOs were a massive bubble that’s unlikely to ever see a recovery. The median ICO return in terms of USD is -87% and constantly dropping. Let’s look at some data! pic.twitter.com/zmCXVPjup6

– Larry Cermak (@lawmaster) August 7, 2019

So, Chermak praised the development of the ICO market, which peaked in 2017. He noted that the median ICO return in US dollars is currently -87% and continues to fall.

“It’s pretty obvious that the ICO market was a big bubble, which is unlikely to recover sometime,” Chermak noted.

In his opinion, the collapse of the ICO market is primarily due to the different interests of investors and project founders. Unlike venture financing, projects raised money mainly from retail investors with the product in its earliest stages. At the same time, investors could not claim the assets of ICO projects.

The data on the total collection of ICO projects for all time varies – ICOBench claims that 5600 startups raised $ 64.5 billion, but other resources provide completely different data – up to $ 14 billion.

Assessing the profitability of ICOs is even more difficult, since many projects have already ceased to exist or their tokens are illiquid.

The largest aggregate fees were recorded in December 2017 – January 2018. At that time, a record number of tokensales was held.

6 / The distribution of these ICOs by month of raise shows a nearly identical trend with the amount of funds raised. Most of these ICOs finished raising funds in December 2017 and January 2018

The average amount attracted during one initial proposal according to a sample of 444 projects at Drops ICO is $ 36.2 million, the median – $ 18 million. In general, they raised about $ 14 billion, Chermak notes.

8 / In terms of USD, only 10.8% of all the evaluated ICOs still have a positive return. This figure would be much lower if all the ICOs were included – most of which don’t even exist anymore. The median USD return is -87%. There have been 11 ICOs with a return of more than 1,000%.

At the same time, only 10.8% of all ICOs still show a positive return, based on available data.

More than 74% of ICOs lost more than 90% in relation to bitcoin. Only 30 projects (7.7%) managed to surpass the first cryptocurrency. The top five ICOs in terms of growth in bitcoin included Binance Coin (5902%), IOTA (1744%), Ethereum (1339%), Lambda (962%) and ChainLink (668%).

11 / The summary table of the best 20 performing ICOs in terms of USD is here pic.twitter.com/KacU8O2Ssf

– Larry Cermak (@lawmaster) August 7, 2019

In terms of the US dollar, the most profitable were Ethereum, IOTA, Binance Coin, NEO and Stellar. In total, 11 projects demonstrated returns above 1000% paired with USD.

“Taking into account the fact that at least 89% of all ICOs have negative returns in US dollars, and a similar trend is beginning to appear in IEO, we can say with confidence that the vast majority of ICOs cannot retain value in the long term. Nevertheless, the winners still win big, ”concluded Chermak.

Recall that earlier, researchers analyzed the development of 57 ICO projects, which together attracted about 8.2 million ETH. They found that since the close of the token sales, 5.9 million ETH (72%) were either moved or spent.

Analyst: 89% of ICOs are unprofitable, and IEO begin to repeat this trend



1XBET: 100% Welcome Bonus.
CLICK ON THE BANNER TO REGISTER And CLAIM BONUS INSTANTLY


Be First to Comment

Leave a Reply

Your email address will not be published.

9  ×    =  nine