A Boston College study analyzed the intensity of tweets on crypto startups' accounts to detect any signs of life when token sales are finalized.
The study found that about 56% of the startups die within 4 months of their initial coin offering. The researchers, Hugo Benedetti and Leonard Kostovetsky, considered 2,390 ICOs that were completed before May 2018.
Kostovetsky states that the wisest and safest investment strategy is selling acquired coins on the first day once ICO closes. Following the first statement, Kostovetsky adds:"What we find is that once you go beyond three months, at most six months, they don't outperform other cryptocurrencies. The strongest return is actually in the first month."
The study shows how risky ICOs are. More than 1000 startups bit the dust so far. "People often look at returns and say this is a great deal, but we teach in finance that return is a compensation for risk," Kostovetsky said.