FinTelegram readers should not really be surprised with the findings of a study on the quality of ICOs. Satis Group, an ICO Advisory Group, just recently published the findings of a study on the quality of Initial Coin Offerings (ICO). While the findings may be shocking, they are by no means a surprise. According to their report, almost 81 percent ICOs are scams, at the same time, only 1.6 percent of them are promising.
Over the time, the ICO industry has been labeled as one of the riskiest investments due to scams surrounding the space. Governments around the world have been warning people to stay away from these form of investments. In September 2017, China banned ICOs prompting other countries to consider a similar stance, including South Korea.
Crypto-Trading is a dangerous place for investors. Just take the price developments over the last 48 hours. BTC & Co increased nearly 20% without any recognizeable fundamental reason. The industry is speculating about this spike.
We learned from some market participants that there is a huge chunk of BTC available for sale. More than 850,000 BTC worth more than US$ 6 billion have been offered to traders in the last couple of days. That’s nearly 5% of all BTC mined and outstanding. It may well be that the price spike is somehow related to this huge transaction. Maybe the sellers look for higher prices?