New Study Says 80 Percent of ICOs Conducted in 2017 Were Scams


#1

A recent study prepared by ICO advisory firm Statis Group revealed that more than 80 percent of [initial coin offerings ICOs conducted in 2017 were identified as scams. The study took into consideration the lifecycle of ICOs run in 2017, from the initial proposal of a sale availability to the most mature phase of trading on a crypto exchange.

The research says that in 2017 “over 70 percent of ICO funding by $ volume to-date went to higher quality projects, although over 80 percent of projects were identified as scams.” The analysts found that four percent of ICOs failed, and three percent had “gone dead.” The study recognized ICO death as “not listed on exchanges for trading and has not had a code contribution in Github on a rolling three-month basis from that point in time.”

According to the study, total funding of coins and tokens in 2017 amounted to $11.9 billion. $1.34 billion (11 percent) of ICO funding went to scams, the vast majority went to three large scammy projects; Pincoin ($660 million), Arisebank ($600 million), and Savedroid ($50 million), which together equal $1.31 billion. This suggests that while a large number of ICOs were scams, they received very little funding when compared with the industry as a whole.

Careful while investing your money guys!! Leaxcoin is one of the rarest or rare project which falls under another 20%.


#2

All this is of course sad, but in this way the development of the whole crypto industry is proceeding. Perhaps in the future with some regulation the situation will improve. I am very glad that today there are such strong projects as #Leaxcoin, which include an excellent team, an excellent product, an excellent idea! I am sure that such companies will occupy a leading place in this world!


#3

Is this true? Why is Savedroid included? Isn’t savedroid being traded now? I dont think they are scam, it is just that some took time for the project to move on its next step. They have different goals and purpose, so for giving only 1 year isn’t enough for these projects to be judge right away.


#4

It’s according to a survey. There are crypto in the market which don’t have any real world application, but still getting traded.


#5

what I feel isn’t 2017 many projects are deceiving, but in the current year. in 2017, I was involved in various projects and the project was all good.
according to your statement above, maybe 2017 the beginning of the project step, after 1 year running the project is not strong obstacle finally left the team, the impact in 2018 the life of the project does not exist.


#6

This is really sad and most probably the reason for the fall in market after January 2018. Scams hurts the markets and pushes away the potential investors. In 2018, no of scam projects would be much greater than 80%.


#7

In the current year, almost every other project is scam and they are just running away with the investors money just after the sale has concluded. People are investing in those projects without doing 1% research. I don’t know much about before October 2017 but after that, scams have increased substantially.


#8

You’re right. More and more ICOs now are scam. But some are very easy to identify. We just need to be extra careful in choosing which project to work with. Good thing there are now projects being launch to fight scam ICOs and they will definitely bring back those investors who have step-backed.


#9

most ico’s are often fraudulent, so IO has not been settled the project hasn’t been completed and all teams are running away, this is because there is no community that directly licenses ico.
if there is an agency or a person who can filter ico it’s good, so before ico it should be legitimate. and the impact is not just investors, bounty hunters also suffer losses because they feel cheated


#10

I am not quite affirmative of that, actually I have seen savedroid too. I’m not an investor but I keep on lurking in their TG and right now they are moving and being listed. I think they should not label with the word scam on the projects with slow development and poor communication. Maybe the word scam is not suited for situations like that. Scam is for projects wherein the team cannot be found, official channels gone, development gone, nothing to hold on. They should put in more concrete criteria to label such. I;m afraid they will erroneously classify one potential project to such which will affect the project as a whole. But yeah, we should be careful enough in investing. DYOR, do not believe in hype now nor ICO listings on review/rating sites, it’s not quite accurate now. Too sad.


#11

a growing number of fraud projects may be because there are no rules in each country that has become a cryptocurrency protector. many investors who have been deceived and confused where to go. maybe because of that, many people dare to cheat in this sector.


#12

yes. Scam terms on projects are not like that. I think SCAM is done by people wrapped in a project that only takes 1 to 3 months, after they get profit they disappear.
if the project is there, the token sales are successful, the team is still there but the token to the exchange is slow, I don’t think it’s a SCAM. it’s like the SVD case.
there are projects supported by great teams but sales of tokens do not meet the target, it is also not a scam. Usually investors’ money is returned again


#13

Their definition of scam might be little different than ours. For me, if project has ran away with the investors’ money and there are no more developments, its a scam.

If project is developing at any pace, you can’t label it as scam. At least I won’t.


#14

human prayer is always impatient, SCAM always comes out of the mouth of man. Only one human goal is SELL, when the project hasn’t paid with the word scam token always appears, even though the project is still running.


#15

I see crypto conditions are getting better, the information is various crypto rules are being swayed in Switzerland. I hope this rule will be implemented quickly, so investors feel comfortable and safe.


#16

I don’t think I can believe this, because in 2017 I personally involved in many icos but I never fill into the hand of scam not until January/February 2018 when many icos was lunch in the name of bitcoin raising.


#17

You were lucky maybe and there were more than few hundred ICOs, you can’t be involved with all of them. Plus not all of them were scam at the moment, some of them worked for few months and then they deserted their project and investors who were holding those coins at the moment lost their investment.


#18

Yes it is 100% true because maximum bounty campaign is scams… Some scam in ICO, some are exchange announcements. But next August maximum bounty will successful.


#19

In August, many good projects delayed their launch and some even refunded the money of users because they could not get the minimum fund required for the development. So I highly doubt that most of the bounties of august would be good except for leaxcoin which will go to sky.


#20

Yes many bounty campaign don’t reach the minimum goal Softcap and they refund among investors. So now some bounty campaigns really good and will achieve Softcap and hardcap.