76% of 2018 ICOs Are Sinking, Research Says

According to the research, most of the tokens of "successful" ICOs are being traded at a loss
20 March 2018   1830

At the MIT Bitcoin Expo in Cambridge, Christian Catalini stated that "40% to 50% of ICOs are currently underwater – trading at a price lower than the initial offering price." 

Having studied the data for 2018, using the ICO statistics from Tokendata, News Bitcoin Com confirms that this is a reasonable estimate. In fact, 76% of the 74 ICOs completed this year are at a loss, given that the ICO statistics calculate ROI based on the pre-sale price of the token, rather than a public sale.

Ether has fallen in price since the beginning of the year, reducing the average yield of each dollar invested in the ICO. These projects can continue to generate healthy profits, as their infrastructure develops and markets are gaining momentum. But, as research says, investing in ICO is now an extremely risky business that is statistically unlikely to bring short-term profits.

In 2017, ICOs generated an average ROI of 573% according to Coinist. This year, just one ICO – Zilliqa – has reached that figure, delivering 12x. Last year’s big hitters, by way of comparison, were

  • Spectrecoin (46,000%),
  • Storj (7,600%),
  • Populous (5,400%)
  • Qtum (4,500%).

For the ICOs in 2018, perhaps, everything is still ahead, but right now investors are unlikely to see big profits, research reports. Large-scale discounting at this stage means that by the time of public sale, as a rule, a few tokens are left, and their valuation, combined with market conditions, makes the profit almost impossible.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   271

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.