The Initial Coin Offering (ICO) boom in 2017 made a lot of people rich. It lured investors with astronomical percentages of Return of Investments (ROI), on which a lot of ICOs delivered. But with the sweet comes the sour, because many ICO projects scammed, didn’t deliver or plain disapointed their investors. 2018 had some promissing ICO projects that delivered and some that disapointed and we can easily put them in the worst ICOs category. In this article we are going to take a look at my take on five of the worst ICOs of 2018.
Keep in mind that this article is just my view on five of the worst ICOs projects of 2018 and there could be even worse projects or some of the mentioned ones could possible do more in the future. With many bad Initial Coin Offerings in 2018, we can safely make a top 15, but the point is to learn from these projects and examine their price movement. Next week we will publish the best ICOs of 2018 and this week we will focus on those that failed and disapointed investors.
Five of the worst ICOs of 2018
5. Sirin Labs Token (SRN)
Sirin Labs Token is a cryptocurrency token that was developed by the company Sirin Labs. It is a part of the Sirin Labs network and the company has been developing the first blockchain smartphone that will use its own blockchain since 2017. The company promotes decentralization with their SRN token and issued an Initial Coin Offering at the very end of 2017. The ICO was a succes for the company and managed to raise money. SRN tokens were sold at 0.69$ per token. When SRN Token was listed in exchanges however the coin was pumped and dumped. For one week the token doubled its value, reaching 3.35$ and it was immediately dumped, crashing below its previous price. It was a downspiral after that for the price of the token, because a lot of people bought in during this time and were put in a difficult possition.
Investors that sold immediately got a reap of the reward, but other investors said bye bye to their money. The downtrend correlates with the whole downtrend for the crypto market, but at the moment SRN Token is being traded for 0.066$. This means that the token has lost almost 92% of its ICO price and 98% from its peak. The project is still going, but the price and market capitalization crashed. This is one of those situations where the project continues to work, but the cryptocurrency is dying. Well, at least they didn’t scam people, right?
4. Iungo (ING)
The Iungo project had some fundamental marketing problems from the start. First, their logo looks like a cheaper version of the logo of Nano. Second, people instinctively read it as Lungo, but it’s pronounced more like Yungo. This created a confusion around its name, brand and image. Iungo was aiming at a decentralized network of wireless internet and wifi, but this is something that the team has still to deliver. Furthermore, the Iungo team stated that the ING token will increase in value in the Iungo network, but at the moment the ING token has no actual use. The worst part is that the token lost 98-99% value from its Initial Coin Offering and is being traded only in Kucoin with a tiny amount of volume. The token has flatlined and it doesn’t look like it can recover. When we add that the project still hasn’t delivered their promise, the Iungo ICO gets the 4th spot for worst ICOs in 2018.
3. Gems (GEM)
The Gems project had a lot of hype around it and it had a very successful Telegram group. Gems promoted itself as a decentralized project, led by two brothers: Kieran O’Reilly and Rory O’Reilly. In order for investors to enter the whitelist for GEM tokens, investors had to write blogposts, promote and share the project on social media. Essentially the project wanted free marketing, before investors could dump their Ether for GEM tokens. When people managed to enter the whitelist, they were informed that the Initial Coin Offering will be conducted by auction. Essentially saying to investors: “Hey, we will try to extract as much Ethereum as we can, before we give you this shiny Token we’ve created“.
Gems continued to be a disapointment, saying to investors that the auction is canceled for a private sale. This was the moment that Gems lost the trust of those that created content for them and credability among the Crypto community. Nevertheless, Gems managed to raise more than 130$ million in the private sale, despite the obvious signs of a bad project. After the sale, investors learned that Gems will retain 75% of all GEM Tokens. It is no surprise that GEM Token lost 98% of its value. Currently the Token has almost no volume, no value and is listed in only one exchange. A great contender for worst ICOs of 2018.
2. Bee Token (BEE)
The Bee Network, Bee Project and Initial Coin Offering were very promising at the beginning. It was promoting itself as a decentralized AirBnb network with a native BEE Token. Bee quickly build hype around itself and became one of the most subscribed ICOs of all time. They had a passionate community, high engagement among investors and were conducting Know-your-customer procedures for every investor in their whitelist. They had a reasonable hard cap and a minimum contribution of 0.2 ETH. So what happened with Bee for them to take the second spot of worst ICOs of 2018? They were hacked.. or it was an inside job, we will never know.
Hackers managed to steal the whitelist for the BEE Token Initial Coin Offering and send phishing emails on day one to everyone on the list. Thousands of investors were scamed and robbed by the end of the day. The most frustrating thing about the situation was Bee’s respons who downplayed the situation. This only showed that the Bee Network has many flaws. Despite all of this, Bee’s Initial Coin Offering managed to hit its hard cap, but the community’s trust was already gone. Most investors immediately dumped the tokens, as its shown on the large volume spike in the beginning. BEE Token lost 98% of its value and 95% of its ICO evaluation, currently being traded only on IDEX and it has almost no volume. And that’s why it earned my number two spot for worst icos of 2018.
1. Invacio AI (INV)
The number one spot for worst ICO of 2018 will easily go to Invacio AI. The Initial Coin Offering was selling the tokens as follows: Stage 1: 0.30$/Coin, Stage 2: 0.65$/Coin, Stage 3: 1,05$/Coin and Stage 4: 1.40$/Coin. The price distribution alone was horrible, paving the way for a pump and dump. The project was aiming to find imperfections on Invacios systems and optimize them. An AI called Jean was allegedly going to fix all inefficiencies and the whole concept was going to be build around it. But instead of a great AI, the final result was a catastrophe. When we fast forward to the present day, we can see that Invacio and their concepts have fallen totally apart.
There are a lot of stories on Medium, showcasing many of Invacio’s failures. Even reviews about the project were skepticle to say the least. The project was overhyping with the presentation, which is often a bad sign. After the Initial Coin Offering of Invacio AI, the Invacio native token – INV was dumped immediately, crashing with over 95%. A wave of angry investors tried to contact them to ask what is happening with the project, but instead of answers they were banned from Invacio’s Telegram group. Short time after, Invacio’s Telegram group was shut down by the company, denying over 10 000 investors.
When the money was secured, Invacio fell apart. The project was caught lying multiple times, to the point that they didn’t even care anymore. More than 10 000 people lost their money with this project and that’s why it wins my number one spot. While many aspiring projects came in 2018 with incredible promises and huge goals, only few of them seem to have the revolutionary impact or potential of Bitcoin or Ethereum.
All of the 5 graphs look exactly the same, like the graphs of dying tokens.Despite all scam and bad Initial Coin Offerings in 2018, there are promising projects. Later this week we will release the article for top 5 ICOs of 2018, where we will see that it’s not all bad and there is still a lot of potential in the Crypto market.