Why Most ICOs Die Within The First Weeks Of Launching

A recent study shows that more than 50 percent of crypto startups that were founded by raising money with token sales die out in just the first two to four months.

This study was done by the Boston College where they analyzed the volume of tweets from all of the startups’ Twitter accounts when they first enter the market. That said, less than 45 percent can maintain their existence after the end of their initial coin offerings. Two researchers worked on this issue, Hugo Benedetti and Leonard Kostovetsky where they watched over 2000 ICOs.

They both believe that the best investment strategy is to buy coins and sell them the first day, but they also say that many users, investors, and enthusiasts can’t really participate in ICOs so it’s not the best option for everyone. Basically, everyone should start selling their coins in the first 5 months according to the study.

They said in an interview: “What we find is that once you go beyond three months, at most six months, they don’t outperform other cryptocurrencies. The strongest return is actually in the first month.”

Also, there have been more studies on this subject where you can see that ICO investing is really risky. About 1000 tokens have already died out. The reason for that is probably the hype with people believing that this industry is only a great option for making easy money in a very short time. This is why many companies and startups see the exact same thing as most people. But that is not entirely true. People and investors as well, lose their attention and their mistaken their purposes along the way which is a strong reason why most of the ICOs fail to deliver to their promises.