BLOCKCHAIN AND CRYPTOCURRENCY NOTES
Some Recent ICOs, Rated
The Good, the Bad and the Ugly
March 6, 2018
Byron Berry, CFA
Last week, we looked at 10 ongoing “pre” ICO’s – discounted sales of tokens intended to attract earlier investors than actual ICOs. We tracked them for a week, to see if there were changes. There were, with half delayed and some data discrepancies. We also looked at their value proposition, both as a business and as a token.
All are early stage, and risky.
Good news: one looks quite good – which in our books means we need to do more due diligence on it.
Bad news: all nine others fall short, many by a lot. And we should be clear that particularly on the governance side, we were generous. We did not closely examine ownership of the entity, tokens can’t truly be verified (but we acted as though they are accurately represented, etc.).
We also note that if we had applied this level of analytic rigor to Bitcoin or Ethereum (or Dogecoin) in their early days or ICO, we would have judged them as extremely risky as well.
We give this upfront disclaimer: we are not being compensated by any of the tokens rated below or their affiliates, and we have no positions in any of them.