Tuesday, June 5, 2018

Those Damn Digital Tulips

"Initial coin offerings (ICOs), sales of cryptocurrency tokens to the general public, have recently been used as a source of crowdfunding for startups in the technology and blockchain industries. 
Even after imputing returns of -100% to ICOs that don’t list their tokens within 60 days and adjusting for the returns of the asset class, the representative ICO investor earns 82%."

Worth the risk?

That's a question for you to ask yourself.

Sauce?

Academic paper.

Nuff said.

3 comments:

  1. what happend to this one?:

    Now, ICOs.

    ICOs are total shit. Almost everything is retarded, garbage or trash. There's like 10 different projects in each segment trying to do data exchanges, blockchain IDs, content streaming and medical records. Dafuq? It's all bullshit in my opinion.

    So many ICOs are garbage that I'm being really selective in my picks right now. Even the "low cap, high hype" ones are being taken off my short list. A lot of people think that the only way to juice up returns and make more money is to gamble in ICOs and do quick flips. Hello. That's what 95% of the other participants are thinking too. 5% are just dumb and don't even know what they are doing.

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  2. Hi Anon,

    I think you misunderstand the point I was trying to make.

    I'm not saying that one should do every ICO. But even if one does, based on the findings from this paper, it seems to have turned out rather well.

    Instead, I'm trying to drive home the point of the positive skew risk-rewards in crypto. ( https://gotmoneygothoney.blogspot.com/2018/05/massive-positively-skewed-cryto-risk.html )

    A better way to think about this is: what if ICO selection criteria was much more strict such that only the top 50% would be invested in? Or the top 25%? Or just the top 10%?

    I postulate that being selective on ICOs would lead to (1) higher likelihood of positive returns and (2) a better than average ROI.

    I still do not go into just any ICO.

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  3. I rather stay with the top few solid crypto then follow ICO. I believe in the future of crypto, and i am a hold on for dear life investor.

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