Scams dominated ICO’s 2017

Discussion in 'ICO’s ONLY' started by The CC Forums, Jul 13, 2018.

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  1. The CC Forums

    Staff Member

    https://research.bloomberg.com/pub/res/d28giW28tf6G7T_Wr77aU0gDgFQ

    2017 saw ICO’s explode into the fundraising arena. This well-researched report on who raised money, where it went and how projects fared exposes the most important criteria for anyone wanting to buy into ICO’s going forward. Most notably 78% of ICO’s were outright scams. 4% failed and 3% are dead projects. Only 15% of ICO’s in 2017 went on to be listed on exchanges. And even that number doesn’t fully represent the real number of actual projects that will make it to completion with a functioning product. That will likely only be a fraction of the 15% that survived after the ICO.

    Bleak picture indeed. Either the ICO investors will need to become more selective, or ICO’s will fail as a find-raising method. Many have criticized the technique of bypassing expert venture investors and going to straight to public fund-raising before any product is even developed. It takes away the focus of even the best tech teams when they are handed millions up front and told they can do whatever they want since no one regulates the space and there are no investors to hold teams and projects accountable.

    Take note crypto buyers: ICO’s will not be a get rich quick investment now that word is out. Do detailed research and pick projects very selectively, or else you wind up with useless tokens.
     
  2. CryptoTC

    CryptoTC Crypto Fat Cat
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    Worth stickying at top of the ICO subforums in my opinion. I’ve moved it here. If you disagree, let me know.

    Everyone scanning through these ICO listings should read this report first.
     
  3. CryptoTC

    CryptoTC Crypto Fat Cat
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    I remain on my anti-ICO crusade.

    https://www.ccn.com/icos-an-unsustainable-financial-bubble-jihan-wu/

    Wu isn’t the most popular figure in crypto, but he is spot on with this opinion. Calling ICO’s a “fad,” he predicts the fund-raising model isn’t sustainable. I completely agree with him.

    It still boggles my mind how many people threw away hundreds of millions of dollars into vapor. ICO’s forever stained crypto and Ethereum.

    They don’t work people. Avoid them. Almost none of them have products. Wait 6 months or longer after an ICO, then buy a token you’re interested in IF it still exists and trades. Most won’t thus saving you money.

    Excerpt:

    I believe ICOs are kind of an unsustainable financial bubble. It will burst eventually,” he said. “It’s just a matter of time. I believe it’s just one year or two. Either way, it will just disappear.”

    While Wu expects traditional equities — stocks, bonds, etc. — to eventually migrate to a tokenized platform, he said that the current ICO model, through which investors purchase tokens that may be regulated as securities but generally do not entitle purchasers to dividends or voting rights, will eventually collapse since investors contribute to the crowdsales purely on speculation that they can sell the tokens later at a profit.

    Wu is not alone on this bearish outlook toward ICOs. Binance, the world’s largest cryptocurrency exchange, was bootstrapped through an ICO, yet the head of its recently-launched venture arm has said that the firm believes the industry is in a bubble that will eventually pop.

    He spoke to CoinGeek on this topic. While he specifically goes out of his way to mention BCH, I’m more calling attention to his comments on ICO’s and how traditional investment vehicles will survive along with just a few cryptos.



    CoinGeek’s original article here.
     
  4. CryptoTC

    CryptoTC Crypto Fat Cat
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    Finally some good news about ICOs. Half of them didn’t raise ANY money at all.

    Maybe more will be discouraged from pursuing garbage fundraising attempts.

    Report: Nearly Half of ICOs Failed to Raise Funds Since Start of 2017 - CoinDesk

    Nearly half of all initial coin offerings (ICOs) in 2017 and 2018 failed to raise any funds, while another 40 percent raised more than $1 million each, a new research report claims.

    Research and consulting firm GreySpark Partners studied the ICO market across the past several years, finding that as many as 890 token sales did not raise any funds at all. By contrast, according to the report (embedded below), 743 token sales were able to reach the $1 million mark.


    GreySpark also noted that many token projects fail to provide a positive return-on-investment, particularly as time passes.
     
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