Despite the large number associated with ICO fraudulent schemes, the average investor in the initial placement of tokens gets a decent profit. This is the conclusion reached by the authors of the report, published in the School of management, Boston College Carroll.
The report consists of 54 pages and is called «Digital tulips? Investors profit from IPOs tokens» (Digital Tulips? Returns to Investors in Initial Coin Offerings). When writing work researchers analyzed 4 003. ICO, raised funds totaling $ 12 billion, as well as monitoring the change in the value of the tokens in different periods of time.
According to the study, in the period between the end of ICO and Deposit the token in the listings of cryptocurrency exchanges, the price of a token increases by 179% on average, it takes only 16 days. Even given the fact that the tokens not included in the lists of the exchanges within 60 days, are completely at a loss, the average investor will still earn 82% of the profits.
Investors who acquired the token-ICO immediately, but only after they consume the lists of exchanges, also got a decent income, because for the first 30 days of trading prices increased by approximately 67%. This figure increases significantly for users who have kept the tokens for a longer time. 90 days the investors will receive 140% profit in 180 days – 430% and for 360 days — as many as 1 880%. The authors note that while data about such long intervals are very small, because most token-ICO traded less than a full calendar year. The researchers write:
«Although our findings can be seen as a sign of blisters, they also provide for a greater compensation for the risk of investing in unproven yet unprofitable platform with unregulated offers».
One of the authors of the report, Hugo Benedetti (Benedetti Hugo) says he was «very surprised» at the results of the research, because the media regularly reported about frauds with ICO. However, long-term forecasts on the further development of the industry to do it are not ready yet.