The current ICO investors are going to be seeing a profit of around 82%, and this means that there is a lot of money to be made in the ICO game. The report talking about this new piece of information came from the Boston College Carroll School of Management.
$12 Billion In Profit for 2017 ICO Investors
In the document ‘Digital Tulips? Returns to Investors in Initial Coin Offerings. You will see that they had found some evidence that they thought would prove there was a lot of underpricing for the token sales going on. Of course, all of the data so far has been proven right. This is after having looked over a dataset that had more than 4,000 ICOs that had already been realized and planned. The ICOs that were researched had earned around $12 billion together, and all of this had occurred after Jan of 2017.
Great Amounts of Profit
The profits seen from the first token sale to the ICO’s first day on the market was around 179%. That was with an average holding time of around 2 weeks. There were times when the issuers had not listed their tokens on any of the exchanges within the 60 day time-frame. During those times researchers found that there were big (-100%) amounts of negative returns coming from the tokens. However, they had still been able to see that the investor being represented was doubling their investment in those types of cases.
When adding up this information with the total asset class data, you will see that the normal token investment profits were around 82%. Also, when adding everything up from the report, you will find that the crypto-tokens show a steady abnormal positive return. The investors who had held onto the tokens that they had for more than 180 days at a time were the ones that were experiencing the highest amounts of profit (around 150% to 430%).
Throughout time you may have noticed that there have been many high-profile exit scams with ICOs. Of course, all of this has led to a lot of negative media attention circulating the well-known crypto-token way of raising capital. Recently there was a campaign that was designed to teach investors. By making use of this campaign the U.S. SEC was able to create a site that was created for a false ICO that had a purpose of looking like the normal red flagged token sale.
With all that in mind, you will see that the more active members of the crypto sphere are continuing to fight for the right to have ICOs. Of course, these really do provide everyone with a great way to generate the support they need for their upcoming projects. Even South Korea has recently said that they were going to be lifting their ban with the domestic ICOs. You might have noticed that the ban mentioned previously has been active for around a year now. With this being the case it would seem that the crypto world might be getting ready for some pretty big changes, hopefully all of them turn out good.