Libra Testnet Surpasses 50,000 Transactions Since September Launch

25m
cryptocurrencynews

Make No Mistake, Crypto is Still Hated by Beijing Despite Bullish...

26m
newsbtc

Kanye West & Kim Kardashian Are Gunning for the White House in 2024

36m
cryptonewmedia

China’s Mobile Payments Show ‘Why Bitcoin Will Succeed’

38m
beincrypto

Crypto Markets Continue to Drop, Bitcoin Briefly Slips Below $8,200

1h
cointelegraph

The Commodity/Cryptocurrency Evolution is Upon Us

1h
bitcoinwarrior

Ethereum (ETH) Likely To Enter A New Bear Trend Against Bitcoin (BTC)

1h
cryptodaily

Spanish Financial Watchdog Warns Against Unregulated ICO Scheme

1h
cointelegraph

Biggest Bitcoin Mempool Since January 2018 Cleared in Only 2 Days

1h
bitcoinnews

Udi Wertheimer: TRON Will Soon Overpower Ethereum

1h
livebitcoinnews

Bitcoin Futures Options: Movement and market impact in 2020

1h
bitcoinwarrior

Venezuela's Petro Has Over 27,000 ‘Affiliated Businesses’, Nicolas Maduro Claims

2h
cryptoglobe

Best Bitcoin Debit Cards – Complete Guide for 2019

2h
bitcoinwarrior

Bitcoin vs Ripple: Who will stand the test of time?

2h
bitcoinwarrior

LocalEthereum Shifts Focus to Additional Currencies Under the LocalCryptos Banner

2h
nulltx

Bitcoin adoption in these industries would boost 2020

2h
bitcoinwarrior

LocalBitcoins enters Finland under FSA KYC policy

2h
bitcoinwarrior

Analysts: Bitcoin to Target Lower-$8,000 Region Before Next Rally...

2h
newsbtc

XRP Fails To Rally As Ripple Scores Another Huge Remittance Deal; What’s Next For XRP Price?

3h
zycrypto

Researcher Breaks Grin’s ‘Privacy’ Spending Just $60 Per Week

3h
cointelegraph

Bitcoin Ban via Executive Order Increasingly Unlikely

3h
beincrypto

Bitcoin Magazine: Mati Greenspan on The Motion in Bitcoin Markets

3h
letstalkbitcoin

DEX trading protocol Leverj releases major update

3h
cryptonewmedia

Bitcoin Gold Is an Example of a “Good” BTC Fork

3h
livebitcoinnews

RSK Joins Forces With Singapore’s Blockchain Accelerator

3h
cryptodaily


ICO Returns: Class of 2017 Still the Champion

The ICO sales of 2017 managed to achieve high returns despite the bear market, but projects that launched in 2018 saw a harsher fate. Recent research by Messari Crypto unsurprisingly shows that the best time to buy into a one of these token sales was back in 2017.

The year 2018 held the record in terms of funds raised in ICOs and the number of projects listed. But at that time, investors were already late in the game. Despite the hype and the promising projects, most tokens ended up below their token sale price. There are now no token-based projects with a market cap above $1 billion, a common valuation during boom times.

Messari Crypto notes that the 2017 batch of ICOs has secured returns of between 41% and above 500%, depending on the initial token sale price. At that time, the low price of Ethereum (ETH) also meant those projects had a more realistic runway.

Most ICOs hold onto their ETH gains. But those that sold tokens at four-digit ETH prices ended up with much less than the expected funds.

ICOs that happened before the crypto boom of 2017 had even more outlandish gains, especially when counting the difference between the token sale price and the peak market value. In the case of Stratis (STRAT), the jump was from $0.002 to $20. Ethereum (ETH) itself was an immensely successful ICO, with a sale price of $0.50 and a peak above $1,400.

But tokens sold in 2019 have lost, in some cases, as much as 99% from their ICO price. Theta Token (THETA) was pointed out as an exception, achieving a net gain of 48% from its initial offering price.

ICOs almost disappeared in the second half of 2019. In total, 98 token sales were registered. So far, there has not been a phenomenon to replace the mass token sales of the past years. Security token offerings failed to spread, as they were too heavy on regulations, and retail investors could not buy the assets. Exchange-based offerings, or IEOs, for a short time span managed to achieve returns of as much as 1,000%. But shortly after, most of the IEO tokens unraveled to below the initial sale price.

ICOs have also seen pressure from regulators, with the US Securities and Exchange Commission (SEC) holding a series of investigations and legal cases against token sellers. The most high-profile cases include EOS, which was fined $24 million, and the recently stalled Telegram ICO, which has not even issued its tokens. The loss of interest in tokens arrived after the SEC expressed its view that most crypto tokens were in fact unregistered securities. This also stopped startups from offering new digital tokens.

What do you think about the ICO boom and bust? Share your thoughts in the comments section below!

Images via Shutterstock

Regarding any copyrights issue, please contact us:content@hashbee.com.

0 comments