Topic: [2018-03-20] 76% of This Year’s ICOs Are Already Under Water (Read 107 times)
That is a very interesting article. I think - I hope - that most of ICOs of 2018 will turn green in few months together with increased price of BTC and ETH.
Because in the concept of all people, participating in the ICO will certainly be able to gain profits. The ICO's sponsors believe that they are profitable. They have made many bad projects. The market conditions are necessarily bad. , I think we all need to change our ideas, investment needs to be treated rationally, otherwise it will cause even greater disasters.
Most ICOs haven't delivered a working product yet.
As much as people hate ethereum, at least it has a working product: the Ethereum blockchain.
As much as people hate ethereum, at least it has a working product: the Ethereum blockchain.
Maybe because the correction period usually occurs at the start of the year. After all the crypto hype last year, the prices of coins is adjusting right now. The dip in bitcoin and ethereum price greatly affects other coins which causes all the other new coins' price.
Yes, most of the ICOs are trading in exchanges are below ICO price. And few of those 50 to 60% below the ICO price.
I don't think these prices can grown up to at least ICO price in coming days or lifetime.
I don't think these prices can grown up to at least ICO price in coming days or lifetime.
2018 has been a tough year for the cryptocurrency markets, and crowdsales have borne the brunt of it. ICOs launching in the first quarter of this year have struggled to turn a profit, with the majority of exchange listed tokens trading at a loss, both in USD and ETH terms. As a consequence, pre-sales provide the only means of turning a profit – and even that’s a long shot.
At MIT Bitcoin Expo on Saturday, Christian Catalini claimed that “40% to 50% of ICOs are currently underwater – trading at a price lower than the initial offering price”. Having examined the data for 2018, using Tokendata and ICO Stats, news.Bitcoin.com can confirm this to be a reasonable estimate. In fact, 76% of 74 ICOs completed this year are in the red, posting an average dollar return of 0.9x. The 56 exchange listed ICOs that are trading at a loss have an average USD return of 0.45x. (ICO Stats calculates its ROI based on the token’s pre-sale price, rather than the public sale, so the average return for all 76 ICOs is in fact slightly lower than stated.)
Ethereum has dropped in value since the start of the year, reducing the average dollar return on every ICO to have launched on its network. Even if 2018’s losing ICOs are calculated in ETH terms, however, they are still trading at an average return of 0.9x. Whatever way the numbers are crunched, investing in ICOs is now an extremely risky business that’s statistically unlikely to produce a short-term profit. These projects may go on to produce a healthy profit once their infrastructure develops and the markets pick up. But if investors can purchase the tokens on exchanges for cheap in the interim, it defeats the whole point of signing up for a crowdsale.
The Halcyon Days of 2017 Are Long Gone
76% of This Year’s ICOs Are Under WaterIn 2017, ICOs produced an average ROI of 573% according to Coinist.io. This year, just one ICO – Zilliqa – has surpassed that figure, delivering 12x. Last year’s big hitters, by way of comparison, were Spectrecoin (46,000%), Storj (7,600%), Populous (5,400%) and Qtum (4,500%). There’s still plenty of time for 2018’s ICOs to come good, though right now investors would simply be happy to see their tokens turn green. It’s been evident for some time that pre-sales are the only realistic route into an ICO. Deep discounting at this stage means there’s typically few tokens left by the time of the public sale, and the valuation of these, coupled with market conditions, makes profiting all but impossible.
Of the 22 ICOs that are in the green this year, just two (9%) are for app tokens. Every other project is for blockchain infrastructure development of some sort, be it dApp directories, DEXes, new chains, or scaling solutions. If you’re going to invest in an ICO, then, the message is clear: be selective, choose blockchain projects over ‘X on the blockchain’ platforms, and make sure you get into the pre-sale. Otherwise, you’ll be wasting your time and your ethereum.
https://news.bitcoin.com/76-of-this-years-icos-are-already-under-water/?utm_source=OneSignal%20Push&utm_medium=notification&utm_campaign=Push%20Notifications
At MIT Bitcoin Expo on Saturday, Christian Catalini claimed that “40% to 50% of ICOs are currently underwater – trading at a price lower than the initial offering price”. Having examined the data for 2018, using Tokendata and ICO Stats, news.Bitcoin.com can confirm this to be a reasonable estimate. In fact, 76% of 74 ICOs completed this year are in the red, posting an average dollar return of 0.9x. The 56 exchange listed ICOs that are trading at a loss have an average USD return of 0.45x. (ICO Stats calculates its ROI based on the token’s pre-sale price, rather than the public sale, so the average return for all 76 ICOs is in fact slightly lower than stated.)
Ethereum has dropped in value since the start of the year, reducing the average dollar return on every ICO to have launched on its network. Even if 2018’s losing ICOs are calculated in ETH terms, however, they are still trading at an average return of 0.9x. Whatever way the numbers are crunched, investing in ICOs is now an extremely risky business that’s statistically unlikely to produce a short-term profit. These projects may go on to produce a healthy profit once their infrastructure develops and the markets pick up. But if investors can purchase the tokens on exchanges for cheap in the interim, it defeats the whole point of signing up for a crowdsale.
The Halcyon Days of 2017 Are Long Gone
76% of This Year’s ICOs Are Under WaterIn 2017, ICOs produced an average ROI of 573% according to Coinist.io. This year, just one ICO – Zilliqa – has surpassed that figure, delivering 12x. Last year’s big hitters, by way of comparison, were Spectrecoin (46,000%), Storj (7,600%), Populous (5,400%) and Qtum (4,500%). There’s still plenty of time for 2018’s ICOs to come good, though right now investors would simply be happy to see their tokens turn green. It’s been evident for some time that pre-sales are the only realistic route into an ICO. Deep discounting at this stage means there’s typically few tokens left by the time of the public sale, and the valuation of these, coupled with market conditions, makes profiting all but impossible.
Of the 22 ICOs that are in the green this year, just two (9%) are for app tokens. Every other project is for blockchain infrastructure development of some sort, be it dApp directories, DEXes, new chains, or scaling solutions. If you’re going to invest in an ICO, then, the message is clear: be selective, choose blockchain projects over ‘X on the blockchain’ platforms, and make sure you get into the pre-sale. Otherwise, you’ll be wasting your time and your ethereum.
https://news.bitcoin.com/76-of-this-years-icos-are-already-under-water/?utm_source=OneSignal%20Push&utm_medium=notification&utm_campaign=Push%20Notifications
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