A recent analysis of ICO presents Carroll School of Management at Boston College showed that the average investor earns about 82%.
The 54-page report titled “Digital tulips? The return on investment in ICO projects,” based on the analysis conducted by ICO 4000, says “a significant underestimation of the ICO”. The projects that were the subject of the analysis collected a total of $ 12 billion, starting in January 2017.
The average growth rates for token-ICO after getting on cryptocurrency exchanges amounted to 179 percent, while the average investment period was only 16 days.
In cases where issuers are unable to achieve listing of its token on the stock exchanges within 60 days, the price fell by almost 100%, however, the “average” investor, even in such circumstances, typically doubled their investments.
Given these data, the average yield on ICO projects is 82 percent.
Overall, the report shows that the crypto tokens “generate abnormally high average return”, and those investors whose investment period is more than 180 days, the average profitability varies from 150 to 430 percent. The researchers came to the conclusion that:
Although our results may indicate a bubble, they are also consistent with the high compensation for the risk of investment in an untrusted platform on the unregulated market. Despite the large amount of fraudulent projects in the industry, our research shows that investors are discerning enough to identify them at an early stage.