Over half of ICO projects die within 120 days

Over half of new cryptocurrency projects don’t make it past a year, it seems…

In addition to our recent story about the number of cryptocurrency projects that have already died out (see below), new research from a Boston College study has suggested a limited lifespan for ICOs. And perhaps, worryingly, declining returns for new coin offerings.

It came up with its findings by analysing Twitter accounts. Specifically, the number of Tweets, and how often they were being sent. The pattern seemingly being a lot of Tweets at first, before things died off once the ICO period in question was over.

In all, 2,390 ICOs were looked at, and the research concluded that 44.2% of startups were surviving 120 days after the end of their ICOs. The study also recommended that people sell their investments within the first six months, with the strongest return coming in month one.

The study can be found here.

Here’s our earlier story from the start of the month…

More than a thousand crypto projects are ‘dead’ as of the end of June, according to to a new report looking at abandoned tokens, scams and more.

The research comes from TechCrunch and is based on data from Coinopsy and DeadCoins, both of which keep an extensive record of dormant coins – 247 and 830, respectively.

‘Dead’ coins as defined by the research are those that have been “abandoned, scammed, website dead, no nodes, wallet issues, no social updates, low volume or developers have walked away from the project”.

The cryptocurrency space has been plagued with worries about scams and phony ICOs since the beginning, but the rising popularity of Bitcoin and other coins means these concerns have only gotten stronger.

Last month it was revealed that only a small fraction of blockchain-based projects had survived, with the average lifespan of these ventures sitting at 1.22 years.

“[These projects] came out very quickly, but die quickly as well,” said He Baohong, director of CAICT. “In this circumstance, governments globally are accelerating their efforts to establish unified standards in order to help blockchain projects to achieve real-life applications.”