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The co-owner of a water park company was arrested in Texas Monday in connection with the 2016 death of a 10-year-old Kansas boy on what was billed as the world’s largest water slide.
A trio of American exchange students in Italy made the unlikely mistake of trying to cook pasta without water a pot full of pasta without actually adding any water. Per Munchies , the mistake was so bad that the pot caught fire on the stove, forcing the three panicked 20-year-old’s to…
The Venezuelan government hopes its oil-backed cryptocurrency will help right the nation’s flailing economy, but a move by President Trump may complicate the bid to outmaneuver US sanctions. Trump on Monday issued an executive order immediately banning all use by Americans of Venezuela’s “petro” currency. Per the AP, cash-strapped Venezuela…
2018 has been a tough year for the cryptocurrency markets, and crowdsales have borne the brunt of it. ICOs launching in the first quarter of this year have struggled to turn a profit, with the majority of exchange listed tokens trading at a loss, both in USD and ETH terms. As a consequence, pre-sales provide the only means of turning a profit – and even that’s a long shot.
76% of ICOs Are in the Red
At MIT Bitcoin Expo on Saturday, Christian Catalini claimed that “40% to 50% of ICOs are currently underwater – trading at a price lower than the initial offering price”. Having examined the data for 2018, using Tokendata and ICO Stats, news.Bitcoin.com can confirm this to be a reasonable estimate. In fact, 76% of 74 ICOs completed this year are in the red, posting an average dollar return of 0.9x. The 56 exchange listed ICOs that are trading at a loss have an average USD return of 0.45x. (ICO Stats calculates its ROI based on the token’s pre-sale price, rather than the public sale, so the average return for all 76 ICOs is in fact slightly lower than stated.)
Ethereum has dropped in value since the start of the year, reducing the average dollar return on every ICO to have launched on its network. Even if 2018’s losing ICOs are calculated in ETH terms, however, they are still trading at an average return of 0.9x. Whatever way the numbers are crunched, investing in ICOs is now an extremely risky business that’s statistically unlikely to produce a short-term profit. These projects may go on to produce a healthy profit once their infrastructure develops and the markets pick up. But if investors can purchase the tokens on exchanges for cheap in the interim, it defeats the whole point of signing up for a crowdsale.
The Halcyon Days of 2017 Are Long Gone
In 2017, ICOs produced an average ROI of 573% according to Coinist.io. This year, just one ICO – Zilliqa – has surpassed that figure, delivering 12x. Last year’s big hitters, by way of comparison, were Spectrecoin (46,000%), Storj (7,600%), Populous (5,400%) and Qtum (4,500%). There’s still plenty of time for 2018’s ICOs to come good, though right now investors would simply be happy to see their tokens turn green. It’s been evident for some time that pre-sales are the only realistic route into an ICO. Deep discounting at this stage means there’s typically few tokens left by the time of the public sale, and the valuation of these, coupled with market conditions, makes profiting all but impossible.
Of the 22 ICOs that are in the green this year, just two (9%) are for app tokens. Every other project is for blockchain infrastructure development of some sort, be it dApp directories, DEXes, new chains, or scaling solutions. If you’re going to invest in an ICO, then, the message is clear: be selective, choose blockchain projects over ‘X on the blockchain’ platforms, and make sure you get into the pre-sale. Otherwise, you’ll be wasting your time and your ethereum.
Do you think ICOs are now too risky to invest in? Let us know in the comments section below.
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German Chancellor Angela Merkel will push back on French President Emmanuel Macron’s ambitious plans to overhaul the European Union at a meeting in Paris on Friday.
WSJ.com: What’s News Europe
Bottled water isn’t just surrounded by plastic, it’s permeated with it, according to a new study. Researchers at the State University of New York tested 259 bottles of water bought in nine countries, including the US, and found that 93% of them were contaminated with tiny plastic particles, the Guardian…
Yes, that was a blimp towing a water skier across the surface of a Southern California lake. The Press-Enterprise reports the blimp towed skier Kari McCollum for 6.9 miles at Lake Elsinore on Tuesday. The newspaper says that’s a new record, according to Philip Robertson, an adjudicator with Guinness…
3:15 PM PT — FOX tells us, “These claims from Mr. Zindel’s estate are baseless, wholly without merit and we will be filing a motion to dismiss. Furthermore, the estate’s complaint seems timed to coincide with the Academy Award…
Cape Town’s water situation is dire , but although it may soon be the first big city in the world to run out of H2O, it’s not the only one nearing such a precarious position. The BBC takes a look at other major urban areas thirsting for liquid sustenance, citing a…