According to a study conducted by ICO advisory company Satis Group , more than 80 percent of initial coin offerings (ICOs) in 2017 were scams. Report also says that in 2013, the market was comprised of 14 cryptoassets that were largely similar to Bitcoin. Now, there are more than 1,500 cryptoassets with over half being tokens created on top of other networks.
Following are the key points of the study:
Report further revealed that total funding of tokens in 2017 was $11.9 billion out of which $1.3 billion of ICO funding went to scams. 1/10th of all ICO fundraising went to identified scams and the vast majority of the $1.2B was from just two projects, Pincoin ($660M), Arisebank ($600M).
The study surrounds the lifecycle of an ICO and has classified ICO’s into groups, with the following definitions:
It has also classified ICO’s into successful, promising and dwindling groups. On the basis of this classification, out of the total number of ICOs, it was found that almost 78% of ICO’s were Identified Scams, 4% Failed, 3% had Gone Dead, and 15% went on to trade on an exchange.
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