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98.9% of Asian Altcoin Tokens Fell Under ICO Price

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The majority of tokens enjoying initial coin offerings (ICO) became listed on renowned digital assets’ trading platforms and exchanges in Asia.

Among these legendary cryptocurrency exchanges are Binance, HADAX, Huobi, OKEx, and KuCoin. The sad news is that the overwhelming majority of these tokens finally settled below their initial ICO selling price.

There are a handful of exceptions to the rule with these ICO tokens. BlockBeats published a report detailing how overwhelming these negative results have been. Fully 98.6 percent of the 264 tokens they investigated fell below their ICO price points by August 21st. The lone exceptions to this disturbing trend were three tokens and stablecoins. These held their initial value or gained in price.

Their report is revealing. It stated that the decline in these ICO tokens was devastating for investors who got in upfront. They took losses amounting to from 70 to 98 percent on average. Objective analysts would call these tokens a total investment loss.

Few Notable Exceptions Liven Up This Otherwise Discouraging Sector

Huobi Token has managed to hold its original value in a notable exception to the cryptocurrency space. The digital assets data site CryptoCompare showed that it was trading around $2.08 previously. This amounted to an impressive 1.9 percent rise in only a single 24 hour period. It means the token climbed around 30 percent from its original ICO $1.52 price.

Yet this is the exception and not the rule sadly. The token with WBTC ticker witnessed its price decline by a stunning 99.86 percent. The original price was .59 before it plunged to .00081 by mid-August.  The problem is that the majority of such new ICO projects start out with huge volatility in the initial trading periods. Exchanges that list higher risk tokens can see massive plunges and enormous take offs. It only takes a matter of hours in a single day.

Ultimately what is killing most of these ICOs is that the projects were never good in the first place. What many of them do with the money is deploy funds in an effort to boost their token price. It is rare when they actually put the money to work building and creating the project.

The BlockBeat report concludes with this sad note. A few investors turn a profit on the ICOs. Most of them lose everything they invest, or nearly everything.

 

 

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