Only 44% of ICO startups survive, reveals study

So, in other words, more than half of ICO startups will end up fail.

This is not a big surprise. the market and the number of fraudulent symbolic sales.

The study revealed a number of other interesting trends and patterns among ICOs.

Digital Tulips?

Assistant Professor of Finance Leonard Kostovetsky co-authored the paper Digital Tulips? Return to investors in initial coin offerings ", in collaboration with doctoral candidate Hugo Benedetti

The title is of course a reference to Tulip Mania, a phenomenon that occurred in 1790 ^{who, at its peak, saw some simple tulip bulbs fetch more than ten times the salary of a skilled worker.}

The market eventually collapses but the narrative is often mentioned in relation to other markets perceived as bubbles, like the dotcom bubble of the late 90s and early years 2000 or more recently crypto-currencies

The stated goal of Kostovetsky and Benedetti was "to provide a comprehensive badysis of the transition and performance of start-ups in this industry since birth," he said. offer up to the list, and beyond. "

A total of 4,000 ICOs were reviewed and all were conducted between January 2017 and March 2018, collectively raising $ 12 billion.

The average average obtained during an ICO was $ 11.5 million; however, this is a little misleading with sales of successful tokens, such as Telegram's recent $ 1.7 billion ICO.

The median average provides a more accurate picture for the common ICO, as it was – it was $ 3.8 million.

Twitter

Another interesting trend discovered by the study was the importance of Twitter in determining which ICOs would succeed and which would disappear (or disappear) quickly.

The study showed a direct link between the level of activity of an ICO on Twitter and its probability of success.

Specifically, the study showed that successful ICOs had a mean average age of 4.4 months before ICOO, with a median of 4 months.

So, when looking for promising ICOs to invest in, this research suggests that it would be a good idea to look at the Twitter account – how long has it been and how much activity is there?

Finally, for the OIC's Twitter accounts that showed no activity after five months the study showed a 100% failure rate

The data was collected from from the following sources:

• ICOdata
• ICOdrops
• ICObench
• ICOrating
• ICOcheck