Home / Crypto Currency / 86% of ICO Tokens Now Worth Less than Initial Cryptocurrency Exchange Listing Price

86% of ICO Tokens Now Worth Less than Initial Cryptocurrency Exchange Listing Price

ico cryptocurrency price


Global professional services firm Ernst & Young (EY) has released a report on the performance of ICOs over the last year, and in keeping with the bear market for cryptocurrency assets, the trend was predictably downward.

Just 10 Tokens Count for 99% of All ICO Gains

EY released a report on ICOs back in December 2017, which included a total of 372 projects. Within those projects were 110 standout ICOs that accounted for 87 percent of all funds raised among all projects analyzed. They dubbed this collection of more successful projects the “Class of 2017,” and in this latest report, released this week, they examined where that class is now in terms of value and progress.

ico cryptocurrency altcoin market cap
Altcoin market cap | Source: CoinMarketCap

Unfortunately, if you had created a portfolio of the Class of 2017, you would have lost about two-thirds of your investment relative to the value of the tokens when they were first listed on a cryptocurrency exchange. And, perhaps more significantly given the wider market downtrend, only 25 of the 110 projects have any kind of working product or prototype.

Further highlighting the risk-reward gamble of investing in ICO tokens, 86 percent are now worth less than their initial exchange listing price. In fact, only 10 projects accounted for 99 percent of any positive gains, so there was less than a one in ten chance of picking the right projects that would prove to be more valuable than their initial offering price. These projects were mostly in the blockchain infrastructure area, indicating that there is still a lot of foundational groundwork being done in the crypto space.

ICO Tokens Not a Better Investment than Ethereum

ethereum price
Ethereum price chart | Source: TradingView

The 13-page presentation available online goes on to point out that even the most successful of the projects have barely made any impact when compared to ethereum, which has the most development, support, and market capitalization by a very large margin.

However, in spite of overall poor performance from the ICOs available since the end of 2017, there doesn’t seem to be any lack of demand for new projects through 2018. The first have of this year has seen over $15 billion USD put into blockchain and cryptocurrency related projects, with most funding coming through ICOs, and some through more traditional venture capital.

Nobody investing in cryptocurrency would be surprised to know that returns were a long shot, or that most projects will fail. Just like the dotcom boom of two decades ago, there were far more losers than winners. Of more concern is the fact that so few projects seem actually to be generating products. It’s one thing to try and fail; it’s another not even to be able to get in the game.

Hopefully, some of the projects that raised significant amounts of money in 2017 will still produce working prototypes to test in the market. But after a year, legitimate questions start to be raised about how well the resources within these projects are being allocated.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Read more

Check Also

Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.