Analyst firm Ernst & Young released a report on the results of the profitability ICO this year. As you may have guessed, due to the global adjustment of the entire stock market investors have lost a significant portion of their money on the crowdfunding. Recall that in the EY report on the ICO last year in December.
10 tokens — 99 percent of the profits
Last year, the situation was much better — as evidenced by the December studies 372 major ICO projects. Of these, about 110 on crowdfunding campaigns were able to collect 87 percent of the total mass of attracted funds. The most successful ICO called “class of 2017”. In its latest study, the analysts decided to see where this “class” now.
Unfortunately, the formation of the portfolio “class of 2017” now, you would have lost two thirds of their initial investment (taking into account the price of tokens at the time of listing on exchanges). However, only 25 projects out of 110 have at least a working product.
More than 86 percent of all tokens now trading below its initial price on major exchanges. Of the 372 ICO only 10 brought anything — 99 percent of the possible profits, investors would have received only ten coins. The result — a chance to choose really profitable ICO does not exceed 10 percent.
ICO is not the best investment
It turns out that even the most successful projects had almost no impact on the world. They are close and can not compete with Ethereum, which in a relatively short period of its existence, radically changed the industry of cryptocurrency.
It is noteworthy that losses on the ICO did not deter investors from putting money in new projects. In 2018, the demand for crowdfunding has increased significantly only in the first six months in the industry received more than $ 15 billion. Most of this amount belongs to just ICO.
Investment in new projects should pay off in the long run. No one doubted that most of the new tokens will not live even before listing on the stock exchanges. Recall that during the dot-com bubble had a lot more losers than winners. But those who managed to survive the tough times (Amazon, Apple, Microsoft) have brought their investors fabulous profit.
Information prepared in CCN.
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