In our world today, Initial Coin Offerings (ICOs) don’t need any definition anymore. They are featuring prominently on most online platforms. Indeed, in many countries cryptocurrency and its related products are legal. In those countries, ICOs are becoming an easy strategy  companies use to raise thousands, if not millions, of dollars.

Regrettably, ICOs are some fraudsters best friends as they use the concept to wreck lives and shatters the dreams of ICO investors. If you are a prospective Initial Coin Offering investor, grab a pizza slice and peruse these interesting facts.

Shocking Facts About Initial Coin Offerings

• Over 75% of ICOs collapse after crowdsales: According to research, times are getting a lot harder for ICO issuers. For instance, in June 2017, about 90% of ICOs reached their projected market cap. Additionally, all the tokens minted were sold during ICO rounds. But today, the table is turning.Over 75% of the ICOs don’t see the light of the day after ICO rounds.
• ICOs last for two months without reasonable sales: While many ICOs lasted for just a couple of days in 2017, stats show that most ICOs stay for two months today – sometimes, ending with no reasonable token sales. In January 2018, Zeepin raised over $62.6 million in a couple of hours.
• EOS Blockchain is the most funded project in recent times: To raise $4 billion for an ICO project is no tea party. Yes, that’s the amount Black.one’s EOS raked in during its ICO rounds, making it the fifth largest cryptocurrency. Funnily enough, Black.one never had a product on offer. Their raised funds came from investor confidence.
• Over 46% of ICOs have no feasible business models: In addition to the fact we have already shared with you, here is another fact you should pay attention to. Yes, ICOs just come to the issuers as inspirations, and then these issuers perfect the idea to sound convincing. Lo and behold, it hits the Internet with lots of sales gimmick to entice investors. As a result, 46% of these projects start as ideas and there are no definite plans beyond their ICO phases.
• Luring investors into ICO is an easy task: With most of the projects advertised as prototypes, convincing investors to give ICO a shot is no difficult task. Putting some figures on it: while the 90% of these prototypes successfully closed the crowdsales, 64% of existing ICOs struggle to deliver well-functioning products a year after they have launched.

Conclusion

From the get-go, people should not assume that all ICOs will collapse before they even launch. One thing is certain: ICOs have come to stay. Though, ICO investors must exercise due diligence before putting their money in any venture. Guess what, this list is a tip of the iceberg as part 2 of this list will reveal shocking ICO facts. Watch out for it!