Successful ICO - are crowd sales that managed to attract the claimed amount unlike failed ISOs. The ISO market has shown a rapid growth since the moment of its appearance and by the end of November 2017 it made out $3,775 billion; however, a tendency to compression is observed: more and more projects of low quality come to the market, which cannot collect the necessary amount or are fraudulent.
Growth of failed ISOs’ number
The expert note the pattern: the more ISOs come to the market, the bigger part of them is unsuccessful. In June 2012, 12 projects came to the ISO and only one of them couldn’t collect the necessary amount. After that, the number of ISOs grew month after month and more and more projects couldn’t collect the necessary amount. For example, in August 2016, several dozens of projects came to the crowd sale, but over a half of them didn’t reach the necessary level. At the same time, the middle amount of attraction for one project was reduced. In October 2017, according to the data of the Smits+Crown Company, all projects managed to attract $662 million in total via ISOs, while in September the amount made out $941. At that, there were 68 crowd sales in October and only 59 in September.
The most successful ICOs
EOS. As of the beginning of December 2017, the project, the crowd sale of which is still going on, managed to attract $200 million. The goal of the project is the automation of business processes in the financial sphere, development of apps and services for business with the use of the new blockchain architecture. Filecoin. The start-up managed to attract $57 million at the pre-sale stage and over $200 million at the main ISO stage. It supposes the creation of an effective system of data storage on the base of the blockchain.
|№||ICO's name||Attractive money|
|3.||The Bancor Protocol||$153,000,000.00|
|13.||Pindify||$51,045,371.00 (not completed)|
Sensational failed projects
Tezos. The block chain platform for smart contracts on the proof-of-stake protocol, which was called “Ethereum killer” at the ISO stage, collected the record at that moment $230 million. However, the dissidences within the team as well as the constant shifting of launch terms of the next stage led to the fact that the investors filed a lawsuit against the project founders with the request to return the invested funds.
The DAO. One of the most sensational ISOs on the Ethereum platform became the project on the creation of a decentralized autonomous community. The project collected $150 million, but the hackers’ attack, in the course of which over $60 million were stolen from the [[bitcoin wallet|wallet], followed to its closing. The conflict within the community about the further actions in this situation followed to the hard-fork of Ethereum and the appearance of Ethereum Classic.
Coindash. The Israeli cryptocurrency exchange met the hackers’ attack at the ISO stage: they replaced the [[bitcoin wallet|wallet] number, so that the investors transferred over $7 million to the plotters. Although as a result, the platform collected $7,5 million and is working now, the situation made everybody think about the safety of the block chain one more time.
Confido. In late November, the organizers of the ISO start-up, Confido simply disappeared having gathered $375 000. Although the project representatives claimed that they were ready to return all the invested funds, the precedent put the community on alert.
PlexCorps. In early December, the Security and Exchange Commission (SEC) in the USA emergently froze the realization of ISO for the first time because of the suspicions of fraud. The project offered the income over 1300% within a month. At the moment of this decision, the project of the Canadian citizen, Dominic Lacroix has already attracted $15 million.
Perspectives of ICO projects
Since the majority of the projects attracting funds via ISOs only plan their realization in 2018 or even later, it is too soon to talk about the results of the business itself. According to some estimations, about 90% of all projects that have successfully completed the ISO will not follow to the creation of a working product.
The analysts of Token Report have studied 226 ISOs and come to the conclusion that only in 20 cases, the tokens placed during the ISO are used for supporting the work of the companies that issued them. The remaining ones are purely speculation tools.