Half of ICO ends with a fiasco. Just a few months

More than $ 12 billion brought together companies in the sale of their crypto currency. The researchers' research shows that after most projects, after a few months, it becomes completely silent and that we forget the benefits of the investments.

ICO (Initial Coin Offering) is, for simplification, the first offer of sale of newly created crypto currencies. After the success of Bitcoin last year, the most popular virtual currency, many companies, by building similar creations of financial engineering, want to earn money.

Such cryptocurrency is associated with a specific project on which its value depends. The money collected from investors is used to develop the project. Often, however, it's only a theory. There is nothing more ambitious plans and investors remain on the ice

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More than half (about 56%) of the crypto projects ICO dies within four months of receiving funds from investors – according to research conducted by researchers from Boston College. Their findings are cited by the Bloomberg agency, indicating that nearly 2400 ICOs completed in May

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– It is better to buy cryptocurrency in ICO and sell it in the early days. This is the safest strategy – comments Leonard Kostovetsky, one of the authors of the research. He adds that the investment is better paid the first month.

The researchers point out that the ICO is a very risky investment. More than a thousand of these types of cryptocurrencies have fallen. The Dead Coins site gathers information about these tokens. He currently has 860 coins on the list, whose value is less than a cent.

It is estimated that this year the value of the OIC has already exceeded 12 billion dollars.

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Boston College Research was based on the analysis of the Twitter activity of companies responsible for the ICO. By posting the offer on the Twitter profile, communication from them was very good, after which in most cases it went out after just four months.

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