Report Indicates That Majority Of Last Year’s Icos Were Scams
Report indicates that over 75% of the current virtual-asset market, a total of 1,500 cryptocurrencies, function on an operational blockchain like Ethereum. The report, released by Satis Group, is part of a five-entry sequence which seeks to scrutinize the condition of the cryptocurrency bionetwork.
An analysis of the ‘market share’ of a number of platforms indicated that Ethereum makes up over 86% of the market share, followed 2.9% by Waves, with NEO being third with a paltry 2.3%. Whether there will be alterations in the current situation is largely an open question. As it stands, the Satis Group elucidates some benefits that Ethereum is bound to gain.
This is mainly because it seems like there isn’t any platform which will be in a position of exceeding Ethereum’s market share. The reason behind this is because Ethereum has a high degree of first mover advantage in addition to a powerful support base from the community, liquidness and inventor buy in.
Evolving platforms have had the opportunity to distinguish themselves with greater levels of transaction per second. This however comes at a cost of advanced stages of control.
By and large, in as much as there has been a significant growth in the adoption of crypto assets, the report however indicates that most of the ICOs launched in the recent past have been confirmed to be deceitful in nature.
Calling them ‘well-known scams’, the report notes that champions of these projects did not have the objective of accomplishing project development responsibilities with the money they received. As a result, such projects were considered by the community to be scams.
Based on the categorization described above, the Satis Group found out that out of the total number of ICOs, about 78% were classified as scams. 4% of these projects nosedived, with a further 3% being dead. However, 15% went on to trade on an exchange.
A report which was released recently by Boston College indicate that well over 50% of the token projects they scrutinized slipped into dormancy within less than six months of the sales. It is also shocking that 11% of the projects which the Satis Group identified as scams had gone into ICOs, with over $1.7 billion being lost by investors. Some of the biggest scams include Pincoi and Arisebank.
A Shift In Regulations
According to the report, there are a number of projects that have sought for brighter coasts, so to speak, with regards to getting access to more likeable supervisory environments. It is worth noting that some of ICO fundraising projects established in Cayman Islands increased from 3% to 40% within the last twelve months. On the other hand, those based in the US dropped from 32% to a paltry 10%.
Sherwin Dowlat, the Satis Group report author, hinted that a more wide-ranging evaluation in the myriad of supervisory methodologies taken by some states in the United States precisely would be accessible in consequent reports.