Although fraudulent ICOs have been mentioned quite a lot recently, the success stories are much more numerous. They, however, are not shared so actively. According to the research by Boston College, an average ICO participant makes a profit of 82%, which is more than the major stocks can offer.
The report by ‘Boston College Carroll School of Management’ states that ICO investors mostly benefit from their actions, as they provide funds to implement innovation. 4,003 ICOs were analyzed in course of the research. The results were the following: an average ICO token grows 179% from its token price to opening price when the token becomes available on an exchange. The growth usually happens within 16 days, which brings a staggering return of 179% in just two weeks. In cases when the token doesn’t get listed within 60 days, the investors are still left with hefty 82% return.
When an average token is listed on an exchange, its prices raises 67% within 30 days. The best returns get the hodlers, securing 140% over the course of 3 months, 430% in 6 months and a mindblowing 1,880% in a year! However, the longer the timeframe, the less reliable the data is. Moreover, most ICOs don’t stay on an exchange for such long periods.
The researchers commented on the results of the study:
“Our paper shows that ICOs investors are compensated handsomely for investing in new unproven platforms through unregulated offerings. It suggests that scams, while plentiful in number, are not as important in terms of stolen capital because investors are shrewd enough to spot (and underfund) them. While our results could be an indication of bubbles, they are also consistent with high compensation for risk for investing in unproven pre-revenue platforms through unregulated offerings.”