80% Of ICOs In 2017 Were Scams

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According to a study by the Statis Group, more than 80% of Initial Coin Offerings (ICO) launched in 2017 were scams. The study looked at the ICO lifecycle from initial proposal to the crypto exchange trading.

“over 70 percent of ICO funding (by $ volume) to-date went to higher quality projects, although over 80 percent of projects (by # share) were identified as scams.” – the study said.

The vast majority of funding went to three, largest scam projects: Savedroid ($50 million), Arisebank ($600 million) and Pincoin ($660 million). Interestingly, out of the total of $11.9 billion raised by ICOs in 2017, only 11%, or $1.34 billion ended up in scams.

This means that even though as many as 80% of the ICOs in 2017 were identified as scams, the majority of funds ended up in legit projects.

3% dead

4% of the total ICOs failed (“Succeeded to raise funding but did not complete the entire process and was abandoned, and/or refunded investors as a result of insufficient funding”), while a further 3% ended up “dead”, meaning that they are “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 a report by PwC, created in collaboration with the Crypto Valley, “In the first 5 months of 2018, a total of 537 ICO’s with a volume of USD 13.7 bn have been closed successfully– which is more than all pre-2018 ICOs combined”

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