80% of ICOs are Scams

[kobita333]

You are correct. But, we can avoid the scam ICO if we do enough analysis actually.
The most common problem with the scam is easy process of creating erc20 token actually. People don't have to spend much money and start their own ICO. Raise some money and become fraud.

[1715127218]

1715127218

[1715127218]

1715127218

[Norihiro]

I doubt that these statistics are perfectly accurate but the very fact is close to truth. Successful and trustful ICO is a rare thing today...

[coino.org]

may be no all of them are scam, but vast majority are falling below ICO price , what is more, besides scam accusation, team can be wrong with product release. I mean even with positive intention project can be a total failure and it is not a scam

[ethalliance]

Well, I would not say that. After all, the problem of ICO is temporary. Yes, there are many scammers out there now. As well as failing companies. But still, 25% were very promising! And this should not be forgotten.

[Irina_ortman]

100% of the result will not be exact and there are no guarantees. But it's possible to increase the "hits" in the correct ICO well, if you study the project.

[Lina Novach]

I think that most people who have some kind of investment background understand that start-ups launching ICO are high-risk investments and their expectations as such.

[Xintenson]

Saw this study on twitter... https://twitter.com/Zeex_me/status/978981735101878272

I've seen a lot of people asking about how many legit ICOs there are, so I thought I'd share

Quote from the article: "The study begins by breaking down ICOs into 6 groups: Scam, Failed, Gone Dead, Dwindling, Promising, Successful. “On the basis of the above classification,” they wrote, “we found that approximately 81% of ICO’s were Scams, ~6% Failed, ~5% had Gone Dead, and ~8% went on to trade on a exchange.”

"Scams were defined by researchers as “Any project that expressed availability of [an] ICO investment (through a website publishing, ANN thread, or social media posting with a contribution address), did not have/had no intention of fulfilling project development duties with the funds, and/or was deemed by the community (message boards, website or other online information) to be a scam.”


DYOR people ...

That's why it's best not to bother with ICOs, there are just too many scammers in this world, and an ICO is an attractive way of duping people. I just didn't realize it was this much. The worst thing is that such assholes have probably made millions off the hard work of others, mean while regular folks are suffering during this time.

[Milla Komani]

Is there any statistics on the number of ICO screeches? I think there might be a good topic for discussion and the constant updating of the list of tokens. it would be a good idea to create tables

[daxiake]

Indeed many scams are out there but factor in that some (good and bad) use the same ICO platforms. There are several services which offer ICO platforms out there (with payment, campaign tracking and built in KYC hooks.)

[irinakovallove]

Saw this study on twitter... https://twitter.com/Zeex_me/status/978981735101878272

I've seen a lot of people asking about how many legit ICOs there are, so I thought I'd share

Quote from the article: "The study begins by breaking down ICOs into 6 groups: Scam, Failed, Gone Dead, Dwindling, Promising, Successful. “On the basis of the above classification,” they wrote, “we found that approximately 81% of ICO’s were Scams, ~6% Failed, ~5% had Gone Dead, and ~8% went on to trade on a exchange.”

"Scams were defined by researchers as “Any project that expressed availability of [an] ICO investment (through a website publishing, ANN thread, or social media posting with a contribution address), did not have/had no intention of fulfilling project development duties with the funds, and/or was deemed by the community (message boards, website or other online information) to be a scam.”


DYOR people ...

Author, if you participate in all projects without analysis. That agrees a lot of projects will be fraud. But why set yourself up for the worst? carefully choose a bounty and your opinion will change. Good luck to you.

[cris17]

It's really sad statistics. And this means we need to be very careful and choose ICO to invest only after learning all the necessary information about the project.

[isen]

100% of the result will not be exact and there are no guarantees. But it's possible to increase the "hits" in the correct ICO well, if you study the project.

Unfortunately, even a good study of the project is not enough, there is a risk that they will not collect the investment, or they will collect but reduce the payments for the bounty. There are a lot of such examples.

[yatogami]

So only 8% of ICOs are reliable projects with tokens being traded on exchanges..
Wow, that's a very disappointing figure and a scary tendency.

[VclDm]

Currently, predicting the percentage of fraud in the ICO is uncertain. So I think maybe more than 80% of scams are going on today so we need to update our knowledge of market experiences to avoid fraudulent schemes.

[Roksodhon]

Yes it is true, more and more of a scam ICO than ICO who succeed at this time. And this is of course is very worrying because more and more people coming into the crypto world just for making money  and don't care though must be harming others. Therefore, we should be careful in investing, I even think of just doing trading only more than invest in a new ICO because it is risk.

[davecrypto]

Well at this point it is simply impossible to say that 80% of ICOs are scam. Most of the ICO started this year, most of them are still under development.
People are screaming scam after months after the ICO happened when there isn't a big profit or the price dropped.

[qiman]

A lot of ICOS have problems now financially because they were selling their ETH slowly, now ETH price dropped many ICOS panic sold and dumped their ETH, causing an even bigger crash in the market, which also worked against them because many of the ERC20 tokens are now rendered worthless and tacky and many people just don't want to buy them or they don't trust ETH itself anymore as a platform. We are now on a low point in this market cycle so many ICOS will be rendered useless also soon. The quality projects though will outshine the rubbish.

[sashulya7979]

because of these scammers constantly introduce new restrictions and come up with new laws! the world community is not against bitcoin and vsaye crypto system, they are against new companies-who turn out to be scammers!

[cheese_x]

I believe it's kinda wrong to spread terrible news about ICO when their ventures have succeeded. Some had helped from ICOs and some are most certainly not. What I need to state is that since it never helped us, doesn't mean its terrible. Not all are a similar trick. Simply put resources into different ways.

[faizzeybutt786]

yes, you are saying right 80%+ Ico is the scam.there are plenty of scam projects and they are making troubles for good ideas.