Report Reveals That ICOs Founders Deceived Investors With False Information

In a recent survey organized by Xangle research, the survey reported that up to 33% of Initial Coin Offering(ICO) investors felt deceived by the cryptocurrency founders. The initial coin offering is usually a way cryptocurrency founders raise funds, like a crowdfunding scheme, but in the cryptocurrency space and investors are given the new cryptocurrency with the hope it would increase in value in time to come.

Xangle is a cryptocurrency transparent platform that took up the duty of publishing the result of its annual Retail Investors Sentiment and Outlook to the public for the year 2020. It was entirely unexpected that many retail investors claim that ICO founders have been dishonest in business by putting up false information to secure investors. The retailers were dissatisfied with the results of their investments on their platforms.

2017 Crypto boom opened the opportunity for ICOs

More than half of the angered retailers want the crypto founders to risk facing court for criminal offenses. They expressed dissatisfaction with the absence of regulatory bodies for cryptocurrency and equally urged the crypto founders’ need for accountability. The research was primarily to study new investors of initial coin offerings from 2017-2020. The research was void of age segregation, as all age groups were allowed to participate in the survey.

Based on the survey results, women towered the survey applicants, 8% more than the men who participated. The result had 22% of investors in 2017, the year which experts understood to have been the year cryptocurrency became very lucrative. 35% of initial coin offering investors took up the offer in 2018, 2019 had only 29% of investors and 2020 with the lowest investors, with only 9% from the survey.

Most of the retails played safe by investing below $1000 in these years, while 29% of investors were between $1,000 and $10,000, a smaller group funded between 10,000 and 20,000 at only 8%, while the smallest group has investors who invested $50,000 and above.

Crypto investors skeptical about ICOs

James Jun-woo Kim, one of the founders of highly esteemed Xangle, gave his opinion on the research results. He opined that there are many opportunities in the crypto space, which leaves room for adequate transparency, especially for new projects, which will build trust in the investors.

It is essential to understand that investors were pressured to invest in a new cryptocurrency following the ICO’s unexpected boom in 2017. The success of the ICOs led to new crypto founders bringing up false information and a lot of promises to the unsuspecting investors. Not many of these ICO became successful, and very few brought gains to investors. The survey later explained that most people were referred to the ICO investment by family and friends, with 55% of investors anticipating worthy returns.

Several investors felt crypto owners intentionally deceived them and that most of them did not adequately inform the market of their plans. Despite these unexpected ending which befell some early ICO that made investors skeptical about new investments, studies show that 56% will gladly make investments in new ICOs as long as there are enough information and research.