Last Year 80% of ICOs Were Scams, Research Shows

Last Year 80% of ICOs Were Scams, Research Shows

It is time to reiterate the all-time crypto-mantra: invest in cyber coins only the amount you can afford losing. It is time for a reminder as over 80% of last year’s token sales – widely known as ICOs –were spotted as scams.

Thanks to a novel research, carried out by ICO advisory firm Statis Group, it has been revealed that 2017 was rich in investments in fake crypto-units.

Going Dead

Statis Group’s research covers the livability of ICOs which took place in 2017 – from their proposals to the latest stage of trading on a cyber-money bourse. Thus, it has been found that last year, by dollar volume, 70% of tokens sales went to higher quality projects, whereas it was also found out that 80% of ICOs were frauds.

In accordance with the analysis, 4% of all 2017 ICOs failed and the other 3% “went dead.” The latter means that those ICOs are no longer listed on crypto-trading platforms, neither have they a code contribution in Github on a 3-months basis at that time.

Overall Info

In the paper, it is also mentioned that last year the entire funding of tokens and coins made up $11.9 billion. Out of them, 11% constituted frauds – that’s $1.34 billion. Majority of that went to such scamming projects as:

  • Pincoin ($660 million)
  • Arisebank ($600 million)
  • Savedroid ($50 million)

These three altogether were equal to $1.31 billion. Thus, despite the fact that a lot of ICOs were scams last year, in reality, they obtained very limited financial support when compared to the market overall.

Other Pieces of Research

According to a TechCrunch’s document, grounded on information from Coinopsy and DeadCoins, in which it was said that over a thousand of cyber-projects were “dead” by June 30, 2018. In the meantime, cybersecurity organization Carbon Black informed that last month there were stolen nearly $1.1 billion worth of virtual coins.