Tezos intends to release a unique product that will allow for the implementation of smart contracts in the public registry.
The project team developed its own language which guarantees the accuracy of the code in a smart contract with mathematical precision. The project raised $206 million in four days.
EOS is a multitasking platform for creating smart contracts. This is an operating system for applications that work on blockchain and an excellent alternative to Ethereum. The project raised $170 million in five days.
Bancor is a platform which empowers its users to exchange any token using the project coin. Unlike stock exchanges, this service will have significantly lower costs. The project raised $153 million in three hours.
However, there are ICOs that turned out to be much less successful.
The DAO demonstrated that a successful fundraising is not a guarantee of the project’s success. The developers wanted to create a single decentralized venture fund powered by Ethereum. The platform went live but due to a mistake in the smart contract code, scammers stole $60 million.
Over time, Ethereum developers and its owners managed to return stolen funds but the price was too high: the Ethereum network and Ethereum Classic split.
The ICO of the CoinDash project has ended soon after it started. Hackers changed the wallet address used to raise funds which was listed on the startup’s site. Due to the fraudulent actions, over $7.5 million was stolen and the ICO website was closed down.
There are also plenty of other examples of the ICOs that raised funds but failed to implement their technological solutions which resulted in token value dropping down and investors facing losses instead of profits.
Project creators should consider the real-life application of their technology while investors should thoroughly analyze the peculiarities and prospects of each particular ICO.
Oftentimes, project failures result from the expectations of the company being too high and the cryptocurrency in which funds are raised being unstable.