ICOs were all the rage in 2017, generating major headlines by pulling in millions of dollars’ worth of investor funds.
While this might be great for the founders, the more important matter may be what investors can learn from the top token sales.
We did some research, investigating the most successful ICOs of 2017 to see which factors helped them enjoy great prosperity, and then we used this information to help single out 2018’s top three ICOs.
To figure out which ICOs were the most successful, we viewed these token sales through three different lenses.
First of all, we ranked them based on how much total funding they raised.
Then, we assessed token sales based on the ROI they produced in 2017.
Finally, we looked at the top three ICOs based on their BMJ QuickScore, a simple figure designed to quickly measure the trustworthiness of a token sale.
Top ICOs By Funding
Top ICOs by ROI
Many ICOs managed to draw significant funding from investors in 2017, and some of these digital token sales quickly provided their token holders with some very compelling returns.
- QTUM, an innovative blockchain application platform, saw its tokens surge more than 20,000 percent last year, after debuting at $0.30 and finishing 2017 at $62.40.
- Santiment, a data feeds platform, also had an ICO that generated strong returns, its tokens climbing close to 2,000 percent in 2017.
- Populous, a platform that leverages the blockchain for invoice discounting, generated a 2017 return of more than 1,500 percent for its token holders.
Top ICOs by QuickScore
The three ICOs that earned the highest QuickScore ratings of 2017 had not reported their results at the time of this report.
However, it is important to note that these token sales finished up not too long ago (within two weeks for 2 of 3 token sales).
- DropDeck, a royalty and debt-financing program, had an ICO that generated a perfect score of 5. The token sale for this program ended December 21.
- BitDegree, a blockchain-based education program, earned a QuickScore of 4.9. Of the top three, this sale ended most recently, finishing up on December 31.
- PayPie, which seeks to use decentralized accounting to provide a fair and transparent method for generating credit scores, also earned a QuickScore of 4.9. This sale ended November 15.
Causes For Success
When explaining what helped these token sales succeed, a good place to start is Media Shower’s ICO Manifesto for Founders.
According to this document, the three most important factors in any digital token sale are:
Several analysts emphasized the importance of these key factors; for example, digital currency trader Marius Rupsys noted that the company’s “breakthrough promise” was important.
However, more than one analyst also stated that speculation and hype were major reasons why certain ICOs succeeded last year. Rupsys said:
“Most ICOs prices are really just speculation, as most of these ICOs did not deliver much from product side, traction or any other measurable result except marketing efforts.”
Iqbal Gandham, UK managing director for social trading platform eToro, stated that when it came to the most successful token sales, “It was all PR driven and hype-driven, combined with a great timing of the market.”
Several analysts emphasized the key role played by regulatory compliance when explaining why certain ICOs succeeded.
One big reason Filecoin’s token sale succeeded was that it was a regulatory-compliant ICO that provided access to traditional investors, said Marouane Garcon, managing director of Amulet, a crypto-to-crypto derivatives platform that focuses on customer success and usability.
“It was successful because of the investors they targeted,” he said.
Matthew Unger, CEO and Founder of iComplyICO, also emphasized the key role played by regulatory compliance, noting that many of the entrepreneurs holding ICOs in 2017 overlooked this consideration.
However, he anticipates a different climate this year, stating that “we expect to see more projects that take due diligence, legal, compliance, and regulation seriously.”
Top 3 ICOs of 2018
Keeping these considerations in mind, we have singled out three digital token sales scheduled for this year as having significant promise.
1) Cypherium, a blockchain platform that leverages multiple levels of governance, aims to generate a solution that is permissionless and highly scalable. The company’s team is made up of former staff of Google, Amazon, and Microsoft. This company has been making headlines with its desire to make digital currencies more mainstream.
2) Experty, a voice and video-calling application, seeks to create a decentralized platform for consultants so they can safely monetize their skills. The team behind this application states that it wants to alleviate the talent crisis that exists within the blockchain community.
3) RightMesh, which aims to connect people around the world, has developed a platform that can help identify nodes (devices) around the world with Ethereum accounts and then allow them to link to each other. Users will be motivated to share their resources – including internet, data, and storage – through the prospect of receiving tokens.
If you are looking to invest in ICOs during 2018, it is important to keep in mind the several key variables that frequently coincide with successful token sales.
While an ICO’s People, Product, and PR are all crucial, these offerings can also be driven by factors such as hype and speculation, as well as how effectively a particular sale complies with existing regulations.
Before investing in any ICO, it is important to perform significant due diligence. One good way to conduct this research is by checking our initial coin offerings page, where you will find information about such offerings.
Another great way to get helpful information is to subscribe to the Bitcoin Market Journal newsletter, which contains the latest news and updates on the digital currency space.