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4 Biggest Factors that Decide ICO Success

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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.

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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

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Reasons Why You Are Much Safer When Crypto Trading on Dexes

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While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.

During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.

Here are some reasons why you might want to consider doing the same.

1. True ownership of your coins

The crypto community has a saying: “not your keys, not your coins.” The saying is now more relevant than ever, but it does not apply on DEXes. Decentralized exchanges

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Crypto Billionaire Predicts Massive Price Growth by 2021

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Crypto prices are once again going up, and Bitcoin has just passed a major resistance level at $6,000. With a situation like that, it is not surprising that everyone in the crypto community is looking forward to the future, wondering what to expect in years to come. Many experts have already given their predictions, some more optimistic than others, but almost all bullish.

Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.

He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.

However, so far, the coin did not react negatively to this incident. While Novogratz believed that such an event would shatter the new confidence in BTC, it simply did not happen. However, he…

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Altcoins

TokenRoll (TKR) Platform Will Take Online Casinos to the Next Level

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Corporate executives are turning to blockchain technology more than ever in an attempt to revolutionize the business world.  Although blockchain is still a relatively new concept, that hasn’t stopped more and more companies from jumping on the bandwagon.  This hot new technology has quickly gained a reputation for providing greater transparency, enhanced security, improved traceability, increased efficiency, and low costs.  One industry that could certainly benefit from decentralization is the online gambling market, specifically, online casinos.  TokenRoll (TKR) has developed a platform that appears to offer a promising alternative to centralized casinos.

Problems with Centralized Casinos

The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model.  And online casinos are no different.  It still needs to be said that centralized casinos have proven that there is a great demand for online gambling.  The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative.  But industries are continually evolving and this one is no different.

A few of the problems facing centralized casinos include the following:

  • Little to no transparency
  • Consumer lack of confidence
  • Privacy concerns
  • 48-72 hour wait time for withdrawals

These are four monumental issues that need to be addressed quickly given the global growth of the market.  Casinos need to…

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