Initial Coin Offering

The period it takes many ICO projects to die according to a new study

According to a new Boston College study that was conducted on ICOs that completed before May has found out that it takes on average four months for many ICO projects to die after completion of the token sale process.

The study based on 2,390 ICOs was conducted by two researchers of Boston College; Hugo Benedetti- a Ph.D. student and Leonard Kostovetsky – an assistant professor at the school. By analyzing the intensity of Twitter activity of these startups, they realized only 44.2% of ICOs survived after the first 120 days since the end of their token sales.

In a telephone interview with Bloomberg, Kotsovetsky states that the safest investment strategy was to acquire coins through an ICO and then proceed to sell them within the first few days. Also, he acknowledges this is an option that is locked out for many individual investors so they can’t participate. However, he emphasizes that all investors are better off selling all their tokens within the first 6 months.

He says:

“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.”

Since the beginning of ICOs, returns have been dwindling as more startups have become smarter on the pricing of tokens and many people have jumped into Initial Coin Offering investing. Kostovertsky notes that the returns of people who sold their tokens on the first day they were listed on a crypto exchange have been reducing by 4% points every month.

He adds:

“They are much lower now, so I wouldn’t expect them to continue to decline at this rate,”

This study comes a few days after another interesting study found out that over 800 tokens were dead according to the Deadcoins website.

Based on this revelation which clearly shows many ICO projects die within 120 days, would you consider selling your tokens after the first month? Share your thoughts in the comment section below.


Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

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