Connect with us

Blogs

4 Biggest Factors that Decide ICO Success

Published

on

ICO
READ LATER - DOWNLOAD THIS POST AS PDF

In an attempt to better understand the ICO process and possibly receive new insights, a social media intelligence company called Singularex has investigated 1200 ICOs that have occurred in the last three years. The company was researching 100 different factors that may have an influence on an ICO and their results and has managed to narrow the list down to 4 crucial aspects that have a say in how an ICO will perform.

Important statistics

Last year, various ICOs managed to raise as much as $6.8 billion. Before, they represented only a needle in a haystack that was all the venture money that US startups have managed to raise. From the start of 2016 to Q1 2018, ICOs raised over $9 billion, and the numbers continue to grow every year.

However, not each ICO performs equally a good, and only around 10% of them have managed to raise over $50 million per ICO. Around 70% of them raised amounts between $10 million and $50 million, while the rest got only $10 million or less. The most successful ones were HDAC, with $258 million raised, followed by Fileecoin with $257 million, Tezos with $232 million, and Votes, which had $224 million.

Obviously, the ICO market is growing and developing as quickly as the rest of the crypto/blockchain world. By studying their methods, as well as what they rely on, researchers were able to determine the main factors that are influencing the success of ICOs.

The four factors influencing ICO success

1) Popularity of ICO website

The first, and likely the most significant factor, is the popularity of the ICO’s website. Like any website, these ones gain popularity as a result of the projects’ marketing activities. The researchers have studied Alexa Rank of each individual ICO they managed to get data off, and have determined that this is among the top factors of influence. The more traffic the website receives, the bigger its rank when compared to other sites.

So, the closer the website is to the #1, the more popular it is. As a consequence, the more popular websites have raised much more money than those that are positioned lower on the list. For example, if the ICO has Alexa rank anywhere in between of 100k and 10k, it will likely raise more than those sites with the rank of 1M.

2) Activity on Github

Most experienced investors have been known to pay close attention to what is happening on Github in order to determine which projects have potential and which do not. There are many ICOs that try to increase the quantity of their code by storing whitepapers, user agreements, working documents and alike there. However, Github is the place where the worthiness of the code is truly determined. In the end, the more repository stars a certain ICO receives, the more money they are likely to get.

3) Token distribution percentage

Now it is time to talk about percentage. According to researchers, around 95% of ICOs usually distribute anywhere between 43%-79% of their tokens through the initial coin offering. If the percentage of distributed tokens is increased, that doesn’t mean that the ICO will collect more funds. Strong projects that are more confident in their quality, and sure of their success usually do not distribute more than it is necessary. Anything else than that might make a project seem desperate, which is generally a bad thing.

4) The community

It would seem that everything always comes down to the community, which is not surprising, considering that a coin cannot live without its supporters. After researching communities of various ICOs, analysts found that not all of them are equally significant. Activity on Reddit and Telegram has shown to be more important than talking about ICOs on Facebook or Twitter. Platforms like these simply aren’t as popular in the crypto world as Reddit and Telegram. Additionally, many consider Twitter an unreliable place since it is easy to cheat on this platform. In the end, the success of an ICO might simply depend on how much of its community use Telegram as a method of crypto-related communication.

For the latest cryptocurrency news, join our Telegram!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Chris Bevan via Flickr

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

Published

on

collateralized debt position
READ LATER - DOWNLOAD THIS POST AS PDF

While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

Continue Reading

Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

Published

on

Hodium
READ LATER - DOWNLOAD THIS POST AS PDF

I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

Continue Reading

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

Continue Reading

Elite