Bitmex, through its Research arm, Bitmex Research have released a staggering piece of information about ICO teams and the allocation on tokens to themselves. The cryptocurrency exchange analysed the token allocations of over 100 ICO teams before reaching a conclusion.
A Monstrous Revelation
The revelation was released in a piece in collaboration with the respected Token Analyst. The revelation exposed the fact that ICO teams initially allocated $24billion worth of their native token to themselves.
The tokens at their peak were valued at $80 billion, though Bitmex claimed that in reality, liquidity was too low to achieve the said value and it will be very hard for the value to be realized. However, the decline in the value of token have reduced the value, and it is currently worth $5 billion.
The research further questioned the credibility and accountability of most ICO teams, stating that the ICO teams have profited at least $131 bln with little or no work. Adding further that though Initial Coin Offerings has proven to be very attractive for project founders, investors cannot have said to be truly happy basically due to the performance of ICO teams.
ICO On the Spotlight
Initial Coin Offering has over the years received bad publication and made news for all the wrong reasons. Government officials, scholars and token experts have thus decided to sensitize the members of the public, so they won’t fall prey to the many fraudulent ICOs that have proliferated the cryptospace.
A report by BTCNN in November revealed the efforts regulatory agencies are taking to protect investors in the United States against fraudulent ICO’s and also blowing the trumpet to whoever that’s interested in listening that ICO is a major source of scam in America.
Although government and regulatory agencies are stepping up their game to be at par or even a step ahead of these fraudsters, the end seems to be far away. As reported, Maksim Zaslasvskiy, an ICO organizer that fraudulently defrauded over 1,000 investors was sentenced to five years imprisonment after pleading guilty to all of the charges read out to him.
To keep investors trust in cryptocurrency projects intact, crypto experts have adviced operators to be on the lookout for fraudulent ICOs and advise their various investors against investing in them, while also encouraging regulatory agencies to be more strict and create a structure that will make it entirely dangerous to participate in any fraudulent ICO transactions.