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   1781

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.

Algorand to Raise $60M in 4 Hour Tokensale

The project was founded by a MIT professor and a Turing Award winner Silvio Micali and is designed to solve the problems of scalability and consensus in the DLT
20 June 2019   2130

The blockchain-project Algorand, aimed at creating an “borderless economy ”, announced the successful completion of the  ALGO tokensale, during which it raised over $ 60 million, CoinDesk reports.

The campaign was held on the CoinList platform and was conducted in the format of the so-called “Dutch auction”, in which the highest price is first announced, after which it gradually decreases.

Simultaneously with the completion of the tokensale, it was announced the launch of the main network of the Algorand. The platform processes 1000 transactions per second with a delay time of less than 5 seconds, which, as noted, puts it on par with such major payment networks as Visa and Mastercard.

In his work entitled The Monetary Experiment: Algorand A Thesis For Algo Currency Markets, the head of Arrington XRP Capital, Michael Arrington writes that Algorand is a project where macroeconomics meets cryptocurrencies. He also notes that Algorand, as a blockchain-resistant Proc-of-Stake algorithm, is distinguished by a combination of advanced cryptography and a smart economic model.

The Algorand project was founded by a professor at the Massachusetts Institute of Technology and a Turing Award winner Silvio Micali. The main task of Algorand is to solve the problems of scalability and consensus in the blockchain.

As noted, the exact number of buyers who participated in the auction remains unknown, but because of high demand, the campaign lasted less than four hours. In total, 25 million ALGO tokens were distributed with a starting price of $ 10 and a closing price of $ 2.40.

Representatives of the project also stated that since tokens are distributed to customers' wallets and are not available on stock exchanges, there is no need to talk about any value of Algorand market capitalization.

Algos are being dispersed to wallet right now (for successful bids).  Therefore – there are non on exchanges. [Therefore, no market capitalization is available for Algorand, though some have speculated it sits around $6 billion.] Which is still a top 10.
 

Algorand Team

Earlier, the project announced plans to auction 600 million ALGO tokens per year, and in the first five years it is planned to release 10 billion tokens.

Also note that over the last year, Algorand raised $ 66 million in venture capital from investors such as Union Square Ventures and Pillar Venture Capital.