Within a year, the ICO project has already died nearly half

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Last year, the explosive growth of the cryptocurrency triggered a large-scale increase in the market, so last year was undoubtedly the year of the cryptocurrency. Some speculators invest in cryptocurrency through a process called “ICO” (similar to the IPO concept of the stock’s initial public offering). In the process, some startups raise funds by selling their own tokens.

The cryptocurrency news site Bitcoin.com conducted a survey of last year’s ICO and found that out of the 902 ICOs tracked by TokenData, there were 142 failures before raising funds and 276 failed after the fundraising.

The failure rate is as high as 46%, and the fact is even more brutal. Bitcoin.com found another 113 projects called “half failures” because their teams and communities have disappeared. If these items are added, the overall failure rate is as high as 59%. Bitcoin.com stated that since 2017, the total funds involved in the failed project will be 233 million U.S. dollars.

Although the failure rate is high and a lot of money is wasted, for those who are familiar with start-up companies, they may not think it has anything. In all startups invested by traditional risk institutions, the failure rate is as high as 75%, and 30% to 40% of them will lose all of the investor’s funds. Of all start-up companies in the United States, 20% of companies have survived the first year.

ICO clearly exceeds this percentage, but it does not seem surprising in such an emerging industry.

The ICO fever in 2017 was basically stable until the second half of this year, and the number of ICO’s failures has exceeded the normal ratio within a few months. Second, not all projects that are closed are truly “failed” – many people do not produce any products at all, and it is very likely that they have never intended to produce products. Some can even be said to be “scams,” and their founders disappear once they raise funds. Bitcoin.com takes time to screen all digital wills that violate the promise. Their findings are very disappointing: these violations of the project left only digital cemeteries, abandoned Twitter accounts, air telegram organizations, websites that are no longer hosted, communities that are no longer maintained.

I can list some crypto currencies:

Avoncoin (ACN)

The website domain name has expired. After the price has started speculation, the price is now close to 0

DarkLisk (DISK)

No social media and community, $1 for 24-hour trading.

There are many similar situations, LandCoin(LDCN),LinkedCoin (LKC), etc.I will not be listed one by one.

On May 26, Clipper Coin Capital (CCC) announced at the Global Token Galaxy conference in Silicon Valley that it will soon establish a new digital currency exchange, ClipperX. ClipperX only accepts digital coins that have been rated as investable by CCC currency ratings. Currently, there are more than 60 premium digital coins in the three investment grades of CCC currency rating A, B and C. ClipperX does not charge money, trying to create a market mechanism for good money to drive out bad money.

The ICO will not disappear in the short term. Suppose you want to invest in a digital asset. Then you need to know enough and be very cautious.

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May 29, 2018 at 10:48AM