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

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

Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

Continue Reading

Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

Published

on

SonicX
READ LATER - DOWNLOAD THIS POST AS PDF

When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

Continue Reading

Elite