A study of the Satis Group: 81% of all ICO turned out to be fraudulent

Satis Group, a leading Advisory group on ICO, classified the initial placement of tokens according to their quality, to demonstrate real picture of the actual progress of projects. According to the findings
Satis Group, nearly 81% ICO was fraudulent, and only 1.6% have a real prospect of success.

The group Satis klassificeret ICO since the first proposals for fundraising until the token appears on the exchange. Researchers divided the projects into the following groups:


Projects ICO, which aggressively promoted through social media and press people calling for immediate investment. Usually they offer big profits and low risks, while the project team was not disclosed, but a Whitepaper is either missing or required information in document a little. Such projects are not initially configured to create a useful product and disappear when you collect a sufficient sum of money.


Projects that fall into this group, managed to gather some funds, but did not reach their goals. They are slightly different from fraud, because they return money to investors if the project failed to collect the minimum required amount stated startup when reaching the ICO.

Given to exchanges

These projects are located exactly in the middle between those who succeed and failed. Like ICO manages to raise the funds and complete the process, but you can’t get on the exchange.


Developing projects succeeded in raising funds, has completed the process the ICO and were admitted to exchange. They meet at least one of the following success criteria:

  • The deployment of the blockchain/distributed registry/product/platform;

  • A clear and transparent map of technological development on the site;

  • Amendments to the code on GitHub at least three consecutive months.

  • Promising

    Projects that meet the above two criteria.


    Projects that meet all three of the above criteria.

    The researchers ‘ findings

    According to Dovlata Sherwin (Sherwin Dowlat), Satis Analytics Group, the results are very depressing. Dawlat and his team came to the conclusion after analyzing the industry the ICO on the basis of various sources such as the websites of the ratings of ICO and CoinMarketCap. Below are the results for ICO projects worth more than $ 50 million:

    • 81% — fraudulent projects;

    • 6% fall during the fundraiser;

    • 5% can’t put the tokens on the exchange;

    • 4.4% fall on the stock exchange (developing);

    • 1.9% of successful projects;

    • 1.8% — promising projects.

    Of 8% of the projects that have come on the market, and almost half successful, 2.8% developing, and 1.6% promising projects.

    A study of the Satis Group once again reaffirms that we must be extremely careful when investing in the ICO, and to scrutinize the project before to transfer money on its development. You should pay attention to the partners of the project — if some of them are big companies, it may reduce the risk of investment. However, you should ensure that the statement of partnership are true.

    Remember also that your money can be stolen not only the organizers of the project. One recent study revealed that more than 10% of all attracted in the ICO funds were stolen by hackers.

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