I Analyzed The ROIs of 1.600 Crypto ICOs - Here is What I Learned
In this study, I want to find out which cryptos have the highest return of investment (ROI). For this, I analyzed price performance of a total of 1.648 initial coin offerings (ICOs).
The dataset I used is from Cryptorank. It includes data on ICO sale price, ROI at all-time high (ATH), current ROI, launchpad details and ICO start date.
❓What Does ROI in Crypto Mean?
The ROI is an indicator that shows how much profit you make with a certain amount of invested capital.
For example: you buy BTC for $1,000 and later sell it for $2,000 — in this case your ROI is 100%.
📊What Is The Highest ROI in Crypto?
Let’s look at the data now. The chart below shows the ROIs of each cryptocurrency at ATH (blue) as well as at the current time (yellow). The horizontal axis shows how much return the token/coin has made in log scale. The black line indicates a ROI of 0%, i.e. the initial ICO price. The further the dots to the right of the black line, the more return the coin has made.
We can draw the following conclusions:
- At their ATH, the ROI of these cryptos was very high on average. A large part of the coins and tokens showed a return of several hundred to thousand percent.
- In addition, there were also many outliers which is not shown in this chart. The highest crypto ROIs amounted to tens of thousands of percent at their peak.
A different picture emerges when we look at the current ROIs.
- A majority of cryptocurrencies are now showing a negative return on investment. This is normal for many cryptos, which lose 90% or more of their original value over the course of their existence.
- However, even at this point (after all, we are in the middle of a bear market) there are still some cryptos with a positive…