More than 10% of funds invested in ICOs are stolen

This conclusion was reached by analysts from Ernst & Young, who analyzed about four hundred examples of initial placement of tokens over the last three years.

Analysts checked how often money from the sale of tokens did not reach the recipients. The conclusion was disappointing: out of the $3.7 billion raised over two years, almost $400 million was stolen.  Research showed that monthly attacks by hackers caused damage amounting to about one and a half million dollars.

Hackers not only stole money, but also gained access to the personal data of ICO participants. Including their addresses, phone numbers and banking information.

According to the report, the most popular tool among hackers was phishing attacks. According to Ernst & Young, criminals are attracted by the lack of centralized control, the irreversibility of blockchain transactions and the general fuss and chaos in the ICO sphere, which was especially felt in 2017.

However, by the beginning of 2018, analysts recorded a decline in interest in the initial placement of tokens. Its popularity began to decline at the end of last year. Thus, in June, 93% of ICO projects raised the required amount. In November, less than 25% of companies were able to raise the declared funds.

This was also influenced by tightening regulation in many countries. China and South Korea have banned initial public offerings of tokens, and Japan, Canada, the United States and Australia have introduced new legal regulations.

The Ernst & Young study also found that ICO projects from the United States, Russia, Singapore and China attracted the most funds. However, many projects, according to experts, are of low quality. “There has been a real boom in the ICO market, many have been able to raise the required amounts, but the quality has dropped sharply as a result,” EY blockchain technology expert Paul Brody told Reuters. He added that in the process of studying the technical documents of ICO companies, EY found obvious errors in the code and signs of a conflict of interest.

Experts came to the conclusion that the cost of tokens was often determined not by facts, but by a sense of fear due to missed opportunities. It is unclear whether this mechanism has changed in the new year. But the first crazy stories around ICO are already appearing.

According to https://m.hightech.fm