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Almost half of ICO this year passed without a finished product

Investors invested in projects that exist only on paper.

05.May.18 10:48 PM
By Sergey Tselibeev


Almost half of ICO this year passed without a finished product
According to the analytical company ICORatings, 46 percent of the ICO conducted since the beginning of this year did not have an MVP, that is, a minimally viable (finished) product. At the time of placement, it was only 26 percent of companies.

Many entrepreneurs conducted the ICO precisely to raise funds for the development of MVP. As a result, investors invested in a project that exists only on paper.

Check the characteristics of the project at the time of investment is often impossible, so investors are faced with a choice: to trust entrepreneurs, or to look for another project. Nevertheless, ICO remains popular - experts say, because companies are afraid not to stay out of the success of the new cryptocurrency or the associated project.

Researchers also noted that 83 percent of the released tokens now are cheaper than at the time of the ICO, and only 21 percent of them are traded on exchanges. Of the $ 3.7 billion borrowed last year around the world for the ICO, more than 10 percent were stolen by hackers who used the irreversibility of blocking transactions and programming errors.

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