Despite the lack of legal protection, the popularity of ICOs has grown significantly in recent years, which is not surprising, since an average investor manages to get quite impressive dividends. This trend has been mentioned in the report made by scientists from the Boston College (Carroll School of Management).
Research paper “Digital Tulips? Returns to Investors in Initial Coin Offerings” is based on the data on more than 4,000 conducted ICOs, which in total attracted about 12 billion USD to their projects. Based on these transactions, scientists conducted analytical calculations and statistically compared the cost of virtual coins in various time periods.
The studies have shown that, in the period between the end of the ICOs and the actual placement of a crypto coin in the listing of exchanges, the price of tokens increased by 180% and reached such a price on average in two weeks. And if to consider that the coins which failed to be published on the lists of exchanges within 2 months were estimated as unprofitable, the investors still got 82% of dividends on average. Those investors who bought tokens of ICOs after their placement on the exchange also earned well — within the first month of trading the cost increased by around 66%.
The longer an investor kept tokens, the more his/her income increased. For example, within 90 days the profit could reach 140%, within 6 months this figure increased up to 429%, and within 12 months — up to 1,880%. But, as the authors of the research paper note, there is not much information on such long-term deposits, since most of the tokens were traded for less than one year.
Hugo Benedetti, a participant of the study, admitted his surprise of such positive results of the research made by Boston scientists, since quite often negative news on ICOs can be found in the mass media. However, the scientific experiment has shown that it is a profitable investment.