Diminishing Token Returns (cont)

Monday, October 30, 2017

A Graph of Diminishing Token Returns

Last week‘s update about diminishing token returns prompted a number of questions and comments. One of the most recurring questions was if we could plot the historical values of the hypothetical token portfolio and show it against ETH and BTC. In anticipation of a large research piece to be published later this week – we wanted to share with you the significant graph below. 

A portfolio constructed of all the ICOs completed in 2017 returned 8x its value (i.e. invest $1 in every single ICO). Compare this with a ~3x return for portfolios of ETH and BTC that have the exact same timing (i.e invest $1 in ETH and BTC at the same time as the ICO) – the absolute outperformance of tokens is evident. However, the token portfolio displays much more volatility on first sight and is further away from its peak level than ETH or BTC. The token portfolio retraced quite a bit (-40%) from the July peak even with new tokens being added since.

Pairing this with last week’s observation that new tokens issued in Q4 have been underperforming in USD, ETH and BTC terms we believe there are signals that that the “token hype” in terms of returns is over. Stay tuned for more…

Weekly Updates

  • NEW on TokenData.io: 
    • Token Analytics (BETA) – We just launched a new analytics section on TokenData. The first tool that we’ve built is a news aggregator that plugs into all news channels and chat applications for a token sale. If you’re sick and tired of signing up to all telegram/slack/discord channels to assess a project, this tool will make your life much easier. This is a first release, so any user feedback is more than welcome!
    • My Tokens (BETA) – You can now create lists of token sales and token returns by creating an account on our website. We’re iterating quickly and adding new features in the coming weeks. Please send us your feedback!
    • Token Jobs (tokenjobs.io) – We’ve launched a free and crowdsourced job posting board focused on crypto projects. Whether you’re a dev looking to move into the space, or you’re a project looking to attract the best talent after completing an ICO – look no further!
  • Weekly Token Data:
    • Nr of completed ICO’s (wk/mo/ytd): 24 / 62 / 306
    • USD Raised (wk/mo/ytd): $239M / $638M / $3.4B
    • Calendar: 32ICOs this week

Token Sale (ICO) Calendar

Mon (10/30)

Tues (10/31)

Wed (11/1)

Thu (11/2)

  • Confideal – Business deal platform
  • Smartlands – Tokenization of agricultural assets
  • UTRUST – Payment platform that empowers buyers to pay with cryptocurrencies while providing a purchase protection mechanism

Fri (11/3)