One of the world’s largest audit and consulting company Ernst & Young (EY) has published a report about the profitability of investment in ICO projects over the last year. According to the report, the cost of 86% of the tokens has fallen below ICO price token sale.
EY has published its first market report for the ICO in December 2017. Then it was investigated 372 of the project, of which EY has allocated 110 “outstanding” ICO, collected slightly more than 87% of all approached through ICO funds. A consulting firm called the list data from 110 projects “Class of 2017”. EY recently decided to return to the list of the most successful in their opinion the ICO and to examine projects from the point of view of profitability and progress of developments.
It turned out that if You made in December last year, the investment portfolio, including all of the coins from the list “Class of 2017”, You would’ve lost at the moment about two thirds of Your investment. According to the study, Ernst & Young, only 25 of the 110 projects are more or less working product or prototype.
Highlighting the risk of investment in token-ICO, EY notes that the tokens 86% of the 110 ICO fell in value below its original cost at the time of token sale. Only 10 tokens from the list were evaluated higher than in the period of initial offering, and brought profit to its investors.
It is reported that successful projects were initiatives aimed at the creation of the blockchain infrastructure, which testifies to the still existing in the industry of cryptocurrency shortcomings and the need to develop the fundamental basics.
Recall that the analysis of the market ICO conducted by Diar, also suggests that the rate of more than 70% of token-ICO fell below their prices during the token sale.
Note also that funding of the ICO project has recently reached the lowest levels in the last 17 months.