(Source: XinHua) Investment in cryptocurrencies is highly risky, with nearly half of initial coin offerings (ICOs) failed last year, a study showed.
In contrast to initial public offerings where investors gain shares in the ownership of a company, an ICO is a controversial means of crowdfunding centered around cryptocurrencies.
For some startup companies, ICOs are a way to raise early capital more quickly than they could through venture funding. They can raise millions by creating digital tokens and selling them through the ICO process.
A total of 902 ICOs took place in 2017, according to ICO tracking company Tokendata. Cryptocurrency news website Bitcoin.com studied these ICOs and found 142 of them failed at the fundraising stage and another 276 failed after fundraising due to exit scams or poor performance. Read more at http://english.china.com/