However, when the study breaks down the projects into categories, the life expectancy increases. Thus, 83% of 694 analyzed ICOs that did not report on the capital and did not appear in a foreign exchange house became inactive after 120 days. The same happened with 52% of some 420 ICOs that raised some capital but did not appear in a house of exchange. The statistics decreased significantly for the 440 ICO whose tokens did enroll for exchanges, with only 16% of them inactive in the fifth month.
Similarly, Benedetti and Kostovetsky state in their research that there is a correlation between the number of published tweets and the marketing of the token in the market. They clarify that the daily gains of a token can increase around 0.3% for each message on Twitter during that day and even on the previous day. They also point out that most of the ads on social networks of these firms are good news, noting the absence of tweets when the news is negative in the market.
Successful ICOs are profitable
Regarding the performance of ICOs that are successful and surpass their initial phases, the research affirms that these projects generate positive returns that increase until months after their launch in spite of being companies not tested or regulated. This is because the tokens continue to appreciate, with returns of up to 48% in the first 30 trading days, something that does not happen with the initial public offerings (IPO).
It is added that the crypto enlisted in a house of exchange generate higher returns. This is compounded by the fact that, given the tendency to sell ICO tokens with discounts -in relation to the market price-, the gains on the invested capital can reach an average of 82%.
At the same time, teachers indicate that, despite the abundance of new companies that launch cryptocurrencies, the capital stolen through deceptive offers is not significant since these projects tend to involve astute people, with to detect the dangers and not invest enough after analyzing the risks.
The above information can be contrasted with the figures handled by the Federal Trade Commission of the United States (FTC), which calculated losses for more than 3 billion dollars at the end of this year, due to fraud with cryptocurrencies. This in the framework of an educational workshop held on June 25 and aimed at preventing the public on the subject.
On this, Benedetti and Kostovetsky estimate that the results of their investigation may go against what Many regulators and governments say that they see ICOs as scams. In this sense, the study also mentions the advantages of these offers, restricted and prohibited in many countries, including China and South Korea.
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