“Digital graveyard”: Nearly half last year’s ICO failed

Many are skeptical of the ICO, as this area attracts fraudsters and lovers of easy money. As it turned out, the skepticism is justified: news site Bitcoin.com analyzed from the ICO and found that, of the 902 track TokenData primary offerings of coins 142 failed to raise funds, and 276 closed, when the funds were received.

Thus, the sum ended in failure, 46% of the analysed campaigns. In addition to this Bitcoin.com found another 113 projects, which analysts described as half fail because of their team had disappeared or community has lost interest in them. Add them and the proportion of the failed ICO will reach 59%. Assessment Bitcoin.com the financing of failed projects in 2017 amounted to $233 million.

The percentage of failed projects may not seem as impressive to those who are familiar with startups. The collapse of over 75% of all start-UPS supported by venture capital, traditional financing, and 30-40% of them spend all the capital investors. Of all new companies open in the United States, just over 20% closed in the first year.

Obviously the numbers ICO surpassed this percentage, which again is not surprising for an industry that is just developing. The results can be called alarming for two main reasons.

First, ICO mania subsided in the second half of 2017. It was then that a disproportionate large number of ICO curled up into a few months. Second, not all closed projects are the classic "failures": many of them do not have the goal of producing the product, we originally talked about exit scam (the founders of the project disappeared with the money collected).

Having dealt with the numbers, Bitcoin.com looked at what was left from a failed ICO. The show was dark: "digital cemetery" of abandoned Twitter accounts, dead channels in the Telegram, sites without hosting, and silent communities. Of course, to replace them will come new ICO, but if you're tempted to invest in one of them, remember this picture, carefully examine the project and only then make a decision about the investment.

Original Article

Leave a Reply

New smartphone 2018. New gadgets 2018. Big discont and great offer for you
24/7 Customer Service (800) 927-7671