26 Jul Top 10 2017 ICOs averaged 136,000% ROI
The top 10 ICOs from 2017 have each returned an average 136,000% return for investors according to Crypto Finance Conference (CFC) analysts.
This contrasts hugely with a Boston College report earlier this year which estimated that 56% or more of ICOs fail in the first four months following a successful token launch.
Who were the BIG 2017 cryptocurrency winners?
Among the top 10 cryptocurrencies and their ROI were IOTA (614,933.98%), NXT (500,708.33%), Ethereum (140,987.14%), Stratis (34,142.86%) and Spectrecoin (19,318.80%).
The “laggards” included Neo (17,718.09%), Ark (12,800.0%), Storjcoin X (6,951.06%), Lisk (6,763.16%), and Komodo (6,600 82%). Still a pretty amazing return for investors.
What’s the takeaway?
Crypto investors who have drunk the Kool-Aid will say “See. There are fortunes to be made by smart investors.”
Critics will reply “It’s a bubble. This is fake money. It can never last.”
As always, the truth lies somewhere in between.
Most of these top 10 cryptocurrencies or tokens are winners because they are being widely used for their blockchain properties as well as their payments capability.
In an interview on CNBC, Alexis Ohanian, co-founder of Reddit and VC firm Initialized Capital, gave his perspective on crypto investments:
“We want to bet on the picks and shovels and because we are a VC firm, we’re still looking for old-school equity investments. We actually haven’t participated in ICOs and token sales because we want to own equity in companies and because we really believe there’s going to continue to be a ton of wild speculation in the actual coin world, the coin arena. What we’re looking for the people that are building the robust, very unsexy infrastructure.”
Just like the gold rush, merchants selling picks and shovels made much more money than the gold bugs and struggling miners during the Klondike Gold Rush.
It’s useful to take a closer look at several of these unique tokens as a guide to what ICOs/tokens might be successful in building the blockchain infrastructure of the future.
Ethereum – the blockchain building block
Ethereum, for example, is both a critical blockchain software platform and a cryptocurrency. Developers use Ethereum to program and launch other decentralized applications built on Ethereum which conveniently allows smart contracts as well as payments in Ether.
The SEC recently declared bitcoin and Ethereum to be “utility tokens” and therefore not considered an investment subject to regulatory oversight.
IOTA is all about the internet of things
IOTA, the biggest ROI winner, is described by Wikipedia as:
“A transactional settlement and data transfer layer for the Internet of Things. It’s based on a new distributed ledger, the Tangle, which overcomes the inefficiencies of current Blockchain designs and introduces a new way of reaching consensus in a decentralized peer-to-peer system.”
Linda Xie has an excellent post that describes the features of IOTA and how it’s different from bitcoin. In short, it is a digital currency for the internet of things but it’s not a blockchain and it has no fees.
Ironically, it is a centralized network in contrast to most other decentralized blockchain networks. While it has some critics, in its early development stage, IOTA is built for scalability, speed, and the potential growth of micro-payments in the future.
The CFC predicts IOTA could reach as many as 75 billion connected devices by 2025.
That’s not a typo. NXT describes itself as “an advanced open source blockchain platform that builds on the functionality of the first wave of pioneering cryptocurrencies like Bitcoin. The platform includes many core-level features, such as a Decentralized Asset Exchange, Marketplace, and Voting system, all in addition to the NXT digital currency itself. “
Similar to Ethereum, NXT gives project developers and individuals a toolkit, combined with an easy to use API system, that lets users integrate and use Nxt blockchain technology in their own applications and projects
What’s the future?
For investors, there’s no guarantee any of these cryptocurrencies will be around in five years or even two years. But if they continue to be an important foundation and building block for blockchain and new decentralized applications, they will grow in value and hopefully in market capitalization as well.
Visuals: chart via Crypto Finance Conference; Ethereum, IOTA, and NXT via their websites; pool table by Blockcoin Today