Reasons why ICOs fail

[grendel25]

Sure, it is easy to add to the list:

1. Over complicated business plans
2. Unforseen regulations by various governments
3. Weak team or team that falls apart or team that is not experienced and capable
4. Over estimation of how successful the ICO will be.  Go watch the last episode of Silicon Valley.  The coin had to be worth $38 in order for Pied Piper to meet finance goals but they all sat there watching the price at 7 cents
5. Failure to deliver on timelines set out in roadmap

There are a lot of potential pitfalls. 

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[Warry]

As I think there are a lot of reasons can make an ICO project failed. At first I think because of bad idea about the project, if an ICO project doesn't have a good idea I don't think there are any investors want to invest in this project. Beside if they don't have good dev team I also think there are no investors wanna invest in it ). The last thing is although they have a good idea for their project but it's impossible to apply to real life so there are also no investors will be going to invest in this project.

[Syella.A]

most of it is like that which makes some ico to fail. there are also the same number of products on the ico, so investors become confused to invest.

[farland7]

I think that investing in ICO projects is too risky because there are many factors that can not be foreseen, for example, whether the project will be able to collect at least a soft cap.

[Zykexia]

Some are ICO`s that can be failed, because they might be after the money that they have in there wallet and they actually think that it is enough for them, and with that they immediately abandon there project. But despite of this circumstances I still believe that there are some ICO that are legit out there somewhere.

[ajeef]

There is just too much ICO all around us. Almost on every step you find ICO for this ICO for that and that can be very tricky for your mind where to put money in.

[angelica lovly]

there are many reasons why ICO is failing, but I think the ultimate failure of ico is to lie in a team that is not solid in marketing their products, and maybe because they are not good at luring their colleagues to join their company.

[pleaderzazure]

Many reasons why an ICO's fail and this a 4 top reasons why ICOs fail

1. Competition Within a Small Target Market
Users and investors in cryptocurrencies still represent a tiny percentage of the entire investment market. And a business plan divides the target investors even further depending upon the project, meaning that your crowd sale campaign may only appeal to a very small target audience. In the end, such projects fail to meet their target funding. Often this reason is closely related to the next one.

2. Founders Tend to Be Too Ambitious
According to OGS Capital, a team of professional ICO consultants, a lot of founders also don’t fully work through their business model, so that it appears attractive to a larger pool of crypto-investors. They fail to prop up the value of the ICO for long. So the hype wears thin, as do investors.

Then there are things that impatient founders do that can hurt its reputation during the ICO process. For example, offering discounts to investors who have the money to buy large blocks of tokens will cause smaller investors to walk away; there is also the potential for some ICO funds to be hacked. These types of things make investors suspicious and reluctant to invest.

3. Failure to Justify The Longer-Term Value
There has to be enough demand to buy a crypto, for those tokens to increase in value over time. If token inflation is unsustainable, demand obviously crashes, and the crypto becomes worthless. There will simply be not buyers and a lot of seller holding valueless tokens. Projects cannot grow unless the crypto behind them does well too.

4. Regulations
China recently banned ICO’s, stating that they were a full threat to the nation’s economic stability. While this may only be temporary, if and when that market returns, it is likely to be heavily regulated. In the U.S., the SEC recently named DAO a security, and ICO’s could face the same applicable rules. Other countries may follow. This prospect discourages investors, in an already tiny investment group.

The other issue is in converting crypto into fiat currencies. Any investor with tokens worth more than $50,000 will face scrutiny by any bank in the U.S. and most banks elsewhere. Many, in fact, will not accept large deposits of fiat currency that have come from cryptos.

One of more of these risks has surely resulted in the large failure rate of ICO’s. Startup funds would do well to take each of them into account far before launch.

source : https://e27.co/top-4-reasons-icos-fail-20180323/

[Chikeokafor888]

Theres a lot of factor for me,the team should be legit,real people and using their own identity,the product/services should be working already the vision should be also great,whitepaper should be written very well ,roadma should be cleared too advisors should be professional too so that the ICO wont have any redflags.

[hxtxlcb]

They are not really ICOs. They just want to use ICO to perform a scam. They can just cheat money. They don't care if their project will succeed.

[kemetz]

depending on which angle we look at it, because in fact there are many factors that affect the success and not its an ico, but the most often the reason for the failure of an ico is the lack of investor interest with what is offered by a thats project

[adekogbe]

A lot of ICOs fail for different reasons but, mostly the projects are not just viable to the blockchain, some requires technology that is not widely available and some are destined to fail because the team created them with bad intentions

[Sigfred Hernadez]

In my view, the most important reason why most ICOs fail is that most developers or entrepreneurs do not pay any attention to the three pillars that make a good and potential ICO, includes Cryptoeconomics, Utility, and Security.

[kingofragon0803]

No, I think it's time for ICO to rise up 

[Babayan]

The main reason why the ICOs projects fail is that the team doesnt keep their promises and dont want to work hard to achieve the set goals.

[chessi]

So many ICOs fail is just because like in every other startup business there are really very few worthwhile projects with excellent professional team. Moreover, this high hype and a  vacuum in regulation environment attract many scammers.

[Zidanmusk]

Honestly, more than half of new ICO offerings fail, because the service or product doesn’t have a market demand. Before launching an ICO, ensure that you find an audience base for it, as well as a real need for the offering. Also, the idea has to require a token-economy. A lot of ICOs are selling tokens just for raising money. These projects may fail as time goes by.

[roxan iris]

In my opinion, potential users want to see projects that have a defined market as well as future utility. Decentralization is the main goal of blockchain-based services or products. It also aims to give users control. If the ICO doesn’t offer these things, it may fail.

[chriselda nina]

I think one of the greatest reasons for the failure of ICO is poor brand identity. Lots of people decide in seconds, and the way a brand looks says a lot about the project. If the crucial elements of the enterprise are half-baked, potential users will question the target.

[ekechie]

ICO fails because some ICO project is just a mere idea on the white paper, they don't have real use case on the real world. the truth is that most ICO project are not meant to be on the project, so when they finish their ICO, it won't compete with the already existing app, so therefore there won't be mass usage.