More Than 50% of ICOs Die in 4 Month

'The majority of ICOs do fail', researcher from Boston College says
10 July 2018   1208

About 56% of ICO start-ups ceased to exist during the first four months after the end of the tokensale. This is reported by Bloomberg.

ICO Funding by Month
ICO Funding by Month

First of all experts appreciated the activity of ICO-projects on Twitter. It turned out that 120 days after the fundraising only 44.2% "survived" .

According to analysts, the most secure investment strategy for various tokens is the sale on the first day of trading. Either way, almost all investors get rid of coins purchased under the ICO in the first six months.

What we find is that once you go beyond three months, at most six months, they don’t outperform other cryptocurrencies. The strongest return is actually in the first month. They are much lower now, so I wouldn’t expect them to continue to decline at this rate. People often look at returns and say this is a great deal, but we teach in finance that return is a compensation for risk. These are stakes in platforms that have not yet been built, that have no participants yet. There’s a lot of risk. The majority of ICOs do fail.

Leonard Kostovetsky

Researcher, Boston College

More than 1,000 tokens have already ceased to exist, and return on investment is steadily declining.

It should be noted that the monthly investment in ICO projects still holds above $ 1 billion. This trend has been maintained since the beginning of 2018.

CEO AriseBank Admitted to Fraud

Now Jared Rice faces up to 120 years in prison, however, confession may reduce this period to 20 years
22 March 2019   164

AriseBank CEO Jared Rice confessed to deceiving investors for $ 4.2 million in cryptocurrency. The plea agreement filed in the federal court of Dallas, Dallas News кузщкеы.

According to the document, Rice promised investors a "guaranteed return" of up to 20% of the invested funds, as well as opening bank accounts insured by the Federal Deposit Insurance Corporation and Visa-related debit and credit cards, although he did not have agreements with these companies.

The $ 4.2 million received from the ICO Rice spent on his girlfriend, lawyers, as well as on hotels, food and trips by Uber.

It is noteworthy that Jared Rice’s plea for cryptocurrency fraud was one of the first of its kind in the United States.

Now Rice faces up to 120 years in prison. However, confession may reduce this period to 20 years. Also, the organizer of the scheme will have to pay damages to deceived investors.

The final verdict on the case will be delivered on July 11.

Jared Rice was arrested in November 2018 on charges of fraud with unregistered securities and fraud using electronic means of communication. In December, the US Securities and Exchange Commission (SEC) obliged him and Stanley Ford, co-founder of AriseBank, to pay about $ 2.7 million as part of the settlement of the charges.