ICO investments remain highly profitable and one of the best investments, despite the fact that investors in this area face fraud.
82% of profit on average
Studies conducted by the Boston College Carroll School Management show that still, ICO investments bring significant benefits.
In a report titled “Digital Tulips? Returns to Investors in Initial Coin Offerings” reviewed 4,003 ICOs, which raised a total of $ 12 billion.
The study showed that on average
ICO TOKENS INCREASED BY 179 PERCENT AFTER LISTING ON CRYPTOcurrency EXCHANGES
Given that some tokens have not been included in the listing of exchanges, the average profit is decreasing. But even considering this factor, the average gain is still 82%, which is an excellent result for investments.
Whoever takes it first wins more
For those who bought ICO after listing on exchanges, the profit is not very impressive. Since after the listing the price increased by only 67 percent in 30 days. But
THOSE WHO TRIED TO BUY ICO EARLY AND LONG KEPT TOKENS PROFIT MUCH HIGHER
So for 90 days, the gain was 40%, 430% for 180 days and 1880% for 360 days. However, the researchers noted that there is less data for these more extended periods of time since most ICO tokens are not traded during the entire calendar year.
ICO Investments are profitable, even considering fraud
Researchers said: “Our paper shows that ICOs investors are compensated handsomely for investing in new unproven platforms through unregulated offerings. It suggests that scams, while plentiful in number, are not as important in terms of stolen capital because investors are shrewd enough to spot (and underfund) them.
“While our results could be an indication of bubbles, they are also consistent with high compensation for risk for investing in unproven pre-revenue platforms through unregulated offerings”
One of the authors of the report, Hugo Benedetti, said: “Nothing guarantees that the market will continue to allocate capital as proficiently as it has so far. Retrospectively, we see that even though there have been many underperformers (ICOs that list or trade below their issuance price), on average the returns to the industry have been largely positive,”.
The data speak for themselves
According to the map, you can also find out which countries are leading in the initial offers of coins. As can be seen, the leaders in this area from the major countries are Russia and the United States.
The following illustration shows the overall effectiveness of the initial coin offering. And as you can see, the record for raising funds in the ICO is January month.
The bottom graph clearly shows that, over time, the return on ICO investments, although changing, remains relatively high and relatively stable.
Dangerous or profitable?
Recently, the authorities of many countries have taken up the regulation in the field of ICO. Much was said about fraud. Also, court cases were filed against some ICO organizers. Many investors against this background have developed a negative attitude towards this sphere.
AS WE SEE FROM THIS RESEARCH, LIKE ALL INVESTMENTS, ICO investments INCLUDE RISKS. BUT THEY END UP ON THE AVERAGE A VERY PROFITABLE INVESTMENT.
It is possible that some of these projects will become known and useful for society. And in the end, they will be able to bring even higher returns to investors who believe in them. After all, during the upsurge of the so-called Dotcoms, there was a lot of fraud. But some of them became well-known brands and shared services, without which many today do not represent their lives. Amazon.com, eBay, Priceline.com, Shutterfly, Coupons.com and other companies brought big profits to those who initially invested their money in these projects or promotions.
The same principle can be transferred to ICO investments. It is possible that an unknown at the moment and a cheap token, tomorrow will be known and bringing a significant income to its owner. It is just necessary to choose with the mind and find something that can be similar to a nugget of gold which, although it does not look attractive, is very expensive.