More than half of OICs fail in fourth month, study finds

A new study reveals that more than half of the Initial Offers in Cryptocurrencies (ICO) projects created so far have failed the fourth month of its launch.

The study, conducted by a team from Boston University suggests that to date, more than 4,000 ICOs have been created since 2017, of which about $ 12 billion have been collected ; however, only 44.2% of them remain active beyond the fifth month.

It should be noted that the method applied to research – and raised by experts Hugo Benedetti and Leonard Kostovetsky – consists of life cycle analysis of projects based on the number of publications on Twitter , assuming that the absence of posts indicates the decline of the activities of the ICO initiative.

In addition, the investigators determine the following:

Desglosándolo por category, 83% of the 694 OIC who do not declare capital and do not appear in a stock exchange remain inactive after 120 days. For the 420 OICs that collect some capital but do not calculate it, this figure is reduced to 52%, and for the 440 OICs listed on the stock exchange, only 16% are inactive in the fifth month.

It examines the value of ICOs and the rate of return achieved in different time steps. In this sense, Benedetti and Kostovetsky commented that " unlike the IPO (Initial Public Offers), after the launch of an ICO, huge rates of return continue to be generated ".

they added the following:

We found evidence of significant undercutting by the ICO, with average yields of 179% of the ICO's price at market opening price on the first day, during an average holding period of 16 days. 19659006] As a final note, the researchers point out that although there is considerable risk in commercial activity, in addition to being subject to international restrictions, to carry and succeed, it is possible to make significant profits.