ICO’s Dead: 90% of 247 Newly-Listed Crypto Tokens Fail to Hold Its ICO Price
It is reported that nearly 90% of 247 crypto tokens listed in 2018 fail to hold its ICO price, leaving investors lose everything, according to a report by Tongbucaijing (a Chinese financial media).
“When profits reach 10%, some people are ready to go; When profits reach 50%, some dare to take risks; When profits reach 100%, they dare to trample all the laws of the world; When profits reach 300%, they are not even afraid of the scaffold.”
What would happen when profits reach 100000%? The widespread quote above from Das Kapital by Karl Marx 150 years ago may give us a hint…
This is the case of bitcoin-like cryptocurrencies. Unexpectedly, mainstream cryptocoins including bitcoin and ether are in effect not the champions of ROI (return on investment) in the crypto market. Year 2017 witness cryptocurrency market offer the highest return to crypto tokens which are pre-sold at a rather low Pre-ICO (pre-sale or private sale) price. Once it is listed in trading platforms, the price would spike dozens of times upon listing and immediate cashing out would earn you a big bucket. In this context, the shortcut to getting rich overnight turns to be whether you have the capability to smell such tokens with great potential.
Despite the strict crackdown on various ICOs last September in China, these tokens are unabated but win increasing popularity for it can easily earn investors great wealth and thus lure more in. While as the plunge of bitcoin in recent months, the great profits ICOs used to bring investors comes to an abrupt end, wiping out most investors.
Few newcomers in, ICO’s dying
According to Tongbucaijing, among the 247 tokens listed in 2018, 87.5 per cent of them can hardly hold its pre-ICO price upon listing. The number will get close to 90 per cent if cases in which price continues to fall after getting listed on exchanges are counted, with average shrink being around 53%. Those whose profits claim to be more than ten folds are less than 3 per cent.
An insider disclosed, in a regular Pre-ICO, price is rated in three hierarchies facing different groups. Media and consultants could get free quota with quite limited amount, kind of swaps of brand and resources. Next comes quota for investment institutions and those big names in the industry, they can get the price ranging from 10% to 30% of the ICO price; price for retail investors who purchase quota from proxies is 30%-50% of the ICO price.
“In a bull market, tokens of hot ICO projects are in great demand, numerous newcomers are flooding in, and almost everyone involved can make a fortune by it; but in the recent bear market, people are cautious and few newbies would join the game, making retail investors lose everything some even at the cost of their lives.”
Only the market can give investors a lesson…
Projects put off their listing
It is learned that since 2018, the cost for a token’s listing on top crypto exchanges has been keeping rising, 10 million is needed and maximum 50 million. As the escalated crackdown from regulators all over the world and bitcoin price diving, new users and activity are dropping dramatically, which all lead to the ICO tragedy.
Some ICO teams in the country are worried that all their effort and costs on listing might be an all in vain in such a market, and decide to put off listing till the market goes up.
And no one knows when the market would go up…