A survey conducted by Xangle Research found that one-third (33%) of the respondents stated that the founders of their investment in the initial coin offering (ICO) deliberately deceived them or concealed key information. Another 17% of responding ICO investors stated that they did not know if they were deceived. However, about half (50%) of the 600 US investors participating in the survey refused to answer the same questions.
The survey aimed to assess investor sentiment after the 2017 ICO boom. The survey also found that more than half of 33% of those who agreed believed that “the creator of the ICO project should be criminally responsible.”
Commenting on the findings, the research firm said: “These responses indicate that there are greater problems with transparency and information asymmetry.” Xangle Research added that information asymmetry “causes investors to be confused about the project and are The message feels deceived.”
Nonetheless, Xangle Research pointed out in its summary how different investor experiences affect their views on similar fundraising activities in the future. The survey summary explains the different experiences:
Some investors have good experience and feel that they have enough information and will do it again. Some investors will invest again, but feel that they don’t know enough about the project, technology or how the ICO works, and hope to conduct more research before investing again.
However, other investors may have “inadvertently invested their funds in fraudulent projects.” These investors believe that “they have been deceived and deceived and will no longer invest in ICOs.”
Lack of awareness and regulations limit cryptocurrency
At the same time, the survey also consulted the respondents, “Based on their personal investment experience, what they think is hindering the development of the crypto market.” According to the survey results, about 27.5% of people said that lack of awareness hindered the market development of. About 24% of respondents believe that lack of supervision will hinder trust and growth. Next, respondents said that lack of security (20%), lack of transparency (14.5%) and lack of use cases (12%) are other important factors hindering the crypto market.
Based on these findings, Xangle Research ends with encouraging “serious crypto projects to start publishing more information about their projects, their founders, and business models”.
In addition, the industry can also “start regulating the flow of information that is open to the public, and can put pressure on export scams, knowing that some rogue startups do cause damage to others.”
Do you agree with the results of this survey? Tell us what you think in the comments section below.
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