The analytical company ICORating conducted another study of the initial coin offering market and claims that 70% of coins issued through ICO this year will never appear on the exchange listing.
There are several reasons for this, according to researchers.
The first reason lies in the complexity and high cost of listing a freshly minted token on exchanges. To successfully list a token on the exchange, first of all, the startup must successfully complete the ICO procedure. Unsold tokens must be burned, which naturally reduces their price and popularity. Therefore, exchanges often refuse to list such coins.
The second point is the listing price, which can range from 100 thousand to 3 million US dollars. Naturally, not all projects, even those that successfully completed a crowdsale, can afford such costs. On the other hand, the exchange itself may refuse to place a token after a thorough check, which costs a lot of money and time. Such a check is carried out within 20 days to ensure that the exchange is confident in the security of the token and that there is no risk of its placement for the reputation of the exchange. Large crypto trading platforms take reputation seriously and may carry out urgent delisting under pressure from the regulator or only against the backdrop of rumors about the dubious reputation and security of the asset, without warning the startup.
Many ICO organizers refuse to list their assets on trading platforms due to these factors.
ICORating, a company conducting a large-scale study of the crypto industry, noted that only 22% of startups that took place in the first quarter added their tokens to cryptocurrency platforms. In addition, during research conducted in May of this year, it turned out that almost fifty percent of blockchain projects launching ICOs have only technical documentation and are far from launching a finished product. Therefore, exchanges do not welcome such tokens in their listing. According to the company, only twenty-six percent of this year's initial coin offerings had a minimum viable product (MVP). And only twenty-one percent of them have added their tokens to trading platforms since the beginning of this year.
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