About 80% of all ICOs were scams, as reported by a new study

12 July 2018

According to another study conducted by Satis Group, about 80% of all Initial Coin Offerings prove to be fraudulent in their nature. The researchers analyzed the state of the cryptocurrency environment, exploring the ‘platform networks’, or blockchains created on the top of existing architectures like Ethereum.

The study found that the market share of the platforms developed on the basis of Ethereum is the largest amounting to 86%, while the blockchains developed on Waves stand at 2.9% and those created on the top of NEO stand at 2.3%.

The report pointed out to a troubling trend in the ICO industry, saying that the percentage of ‘Identified Scams’ was 78% of all ICOs. The research agency applies ‘Identified Scams’ term to those fraudulent schemes, which had no intention of completing the project development obligations using the raised funds and were viewed by the entire community as scams, judging by the message boards, website design and other information posted by the projects.

The report further says that apart from Identified Scams, the con-game list also includes 4% of failed projects, 3% of the projects that had gone dead and 15% of the projects went on to trading on cryptocurrency exchanges.

Meantime, Satis makes a reservation saying that only 11% of the funds raised went to the identified scams, which is about USD 1.7 billion.

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