ICO Performance Ranking Based on Ethereum Price Fluctuations

Ether Price Analysis: Impacts on ICO Projects

Recent research has indicated that despite a significant decrease in Ether’s price from its previous all-time high, numerous initial coin offering (ICO) projects have managed to capitalize on their Ethereum holdings. The study, a collaboration between BitMEX and TokenAnalyst, sheds light on the diverse approaches adopted by ICOs regarding their Ethereum balance.

Key Findings of the Research

• Filecoin, a decentralized storage network, has realized a gain of over USD 135 million due to the change in ETH price.
• Golem, often dubbed as the “AirBnB for computers,” has estimated gains of around USD 20 million and unrealized gains of over USD 70 million.
• DigixDAO, a smart assets company, boasts unrealized gains exceeding USD 95 million.

Realized and Unrealized Losses

Conversely, the research also outlines the presence of ICOs with substantial losses:

• Sirin Labs, a developer of blockchain-based smartphones and computers, leads with losses surpassing USD 40 million.
• Status, a mobile Ethereum operating system, and Fusion, a cryptofinance platform, have incurred losses exceeding USD 30 million.
• Monetha, a blockchain-based platform targeting trust in e-commerce, experiences both unrealized losses and realized gains.

Impact on Ethereum’s Price

Contrary to popular belief, the notion of ‘panic sell’ by ICO projects appears to be less impactful than previously thought. Moreover, the research emphasizes the lack of accountability in some ICOs, raising concerns about the fulfilment of promises and the utilization of funds.

Competition over Scarce Resources

The study also addresses the competitive dynamics among ICO projects, highlighting the potential inflation of costs for resources such as developers. This, it is argued, may not only affect the cryptocurrency ecosystem but also have implications for startups in the wider technology industry.