What is the Percentage of Failed ICOs in the Cryptocurrency Industry?

The cryptocurrency industry has seen a surge in popularity over the past few years, with more and more investors looking to get involved in the market. One way that investors can get involved is by investing in initial coin offerings (ICOs). However, with so many ICOs available, it can be difficult to know which ones are worth investing in. One important factor to consider is the percentage of failed ICOs in the cryptocurrency industry.

1. What is an ICO?

Before we dive into the percentage of failed ICOs in the cryptocurrency industry, let's first define what an ICO is. An ICO is a fundraising method for new cryptocurrency projects. It is similar to an initial public offering (IPO) for stocks, but instead of buying shares in a company, investors buy tokens that can be used within the project's ecosystem.

2. What is the percentage of failed ICOs in the cryptocurrency industry?

According to a report by ICO advisory firm Satis Group, 81% of ICOs launched in 2017 were identified as scams. This means that only 19% of ICOs launched in 2017 were legitimate. Additionally, a report by Ernst & Young found that over 10% of the funds raised in ICOs were stolen or lost due to hacks or scams.

3. Why do so many ICOs fail?

There are a number of reasons why so many ICOs fail. One reason is that many projects are simply scams, created to take investors' money without ever delivering on their promises. Another reason is that many projects lack a solid business plan or viable product, making it difficult for them to succeed in the long term.

Investing in cryptocurrency can be a risky endeavor, but there are some things that investors can do to minimize their risk. Here are a few tips:

- Do your research: Before investing in any ICO, make sure to do your due diligence. Read the project's whitepaper, look at the team behind the project, and check to see if the project has any partnerships or advisors.

- Look for a viable product: Make sure that the project has a solid business plan and a viable product. If the project doesn't have a clear plan for how it will make money, it may not be worth investing in.

- Diversify your investments: Don't put all of your eggs in one basket. Invest in a variety of cryptocurrencies and ICOs to spread your risk.

- Keep an eye on the market: The cryptocurrency market can be volatile, so it's important to keep an eye on the market and adjust your investments accordingly.

In conclusion, the percentage of failed ICOs in the cryptocurrency industry is high, with many projects turning out to be scams or lacking a solid business plan. However, by doing your research, looking for viable products, diversifying your investments, and keeping an eye on the market, you can minimize your risk and potentially profit from this exciting new market.