80% of the ICO held in 2017, was fraudulent projects

80% of the ICO held in 2017, was fraudulent projects

A recent study prepared by the consulting firm Statis Group, showed that more than 80 percent of all ICO, held in 2017, have been identified as fraudulent projects. The study looked at the life cycle of ICO, from the moment the first presales, to stage the token appears on the cryptocurrency exchanges.

According to the study, in 2017 more than 70 percent of the funding received real ICO projects, although more than 80 percent of projects (by number) were identified as fraudulent projects.

Total funding for ICO projects in 2017 $ 11.9 billion. From 1.34 billion (11 per cent) managed to obtain fraudulent ICO. Most of these funds (1,31 billion) received a total of three projects: Pincoin (660 million dollars), Arisebank (600 million USD) and Savedroid ($50 million). This suggests that although a large number of ICO was fraudulent, they got very little money compared to the industry as a whole.

See also – More than half of the ICO projects fall apart in just 4 months, but investing in them is profitable. Why?

Earlier this month, TechCrunch published an article based on data Coinopsy and DeadCoins, stating that as of June 30, 2018 more than 1,000 cryptocurrency projects are “dead”. According to Coinopsy, “dead” cryptocurrency, there are 247, while the 830 has DeadCoins list of dead cryptocurrencies.

In a joint report, consulting firm PwC and Swiss Cryptocurrency Association argues that the ICO projects in the period from January to may 2018 managed to raise 13.7 billion dollars that twice more than in 2017.

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