June 23, 2024

Data Shows That The Return On ICO’s For Everyday Investors Is Sitting On 82%

It is a pretty much an understood fact that when it comes to the world of business, it’s the bottom line that counts, and based on new analysis those who have invested in Initial Coin Offerings or ICO’s all have very looking financial portfolios. The findings from research conducted by Boston College Carroll School of Management found that when the earnings of investors in ICO’s were compared that it emerged that their earnings tended to sit around 82% profit.

The Report Findings

The report that has been titled: ‘Digital Tulips? Returns to investors from Initial Coin Offerings’ has gripped the world by storm. The report has argued that the vast majority of ICO’s are far too cheap; the findings were based on an analysis of over 4000 ICO’s that had been established within the cryptocurrency market. The total value of all the earnings that the 4000 ICO’s studied had thus far contributed to the market was $12 billion; interestingly enough, many of these ICO’s have only begun in the market since January 2017.

When the researchers compared the price that the Cryptocurrencies started out on and the prices that they were trading at, at the time that the research was collected, it became apparent that huge growth was occurring. This growth is perhaps best shown with the statistic that each token’s value grew by about 179%, despite the fact that quite a few of the investors analyzed had only kept the tokens for round about 16 days at a time.

Limitations To Growth

The report did note limitations to the growth model; it found that investors who did not sell off the cryptocurrency tokens to other investors within two months of purchasing them would incur significant losses. However, despite losses being incurred, and in some cases, the devaluations were largely proportional to gains, the academia still noted that the investor’s growth was practically twice as much as they had initially put in.

Once all of these figures were computed and put into a total group of assets, it became quite clear that the usual rate of return that an investor in ICO’s can expect is approximately 82%. And if that isn’t enough to sweep the world over, who knows what is.

The Highs For Those Who Wait

The report went on to add that Cryptocurrencies are still in a phase where they are offering unexpectedly high returns in contrast to traditional financial instruments. The researchers did also note that the investors who made the greatest gains are those who held on to their tokens for 15 months or more, can expect a return on investment that is equal to or greater than 150%, with some investors experiencing rates of returns as high as 430%.

The researchers went on to add that on the one hand this could be interpreted as the sign of an impending bubble within the Cryptocurrency market. Or it could also be seen as the significant payout due to the high risk of investing in a market that is not currently within the bounds of state legislation and mechanisms.

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