A small team of researchers from Boston College came to the conclusion that most ICO’ fail in their first four months. To date, more than 4,000 ICOs have been conducted, raising a total of about $ 12 billion. But after the funds are raised, most of them go on to fail.
However, it is worth considering that they only evaluated ICO projects by their activity on Twitter. According to the information received, only 44,2% of the projects show any activity in their account during the fifth month of their existence after the fundraiser has ended.
The authors of the document analyzed not only the life cycles of projects, but also the chances of them bring a profit to their investors. They concluded, that most attractive ICOs tend to be those that can list tokens on crypto-exchanges. 83% of 694 ICO-projects that have not reported on the funds collected and did not receive listing on exchanges, cease activity within 120 days after the ICO.
Despite such pessimistic data, researchers still believe that investing in ICO is a profitable venture. The authors of the document concluded that tokens continue to generate anomalous returns, unlike IPOs. Adding that token prices are especially active during the first 6 months after the launch of the project.
By Ekaterina Ulyanova