Xangle, a cryptocurrency disclosure and transparency platform published the results of its ICO Retail Investor Sentiment and Outlook 2020 report today. Nearly one-third of the US-based retail ICO investors expressed their anger against ICO projects as they felt crypto founders had deceived them by providing false information.
According to the released report, around 54% of the deceived investors wanted criminal proceedings against ICO founders. Investors felt the crypto market needed more accountability and a clear regulatory framework.
The research is based on 600 respondents across different age groups who invested in an initial coin offering between 2017 and 2020. More women (58%) participated in the survey than men. The research found that 22% of the respondents invested in an ICO during the boom of 2017, 35% invested in 2018, 26% in 2019, and only 9% in 2020.
Nearly half of the respondents invested less than $1,000 in an ICO, while 29% invested between $1,000 and $10,000. Approximately 8% invested between $10,001 and $20,000. According to the report, nearly 2% of the surveyed people invested between $50,001 and $100,000.
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Commenting on the results, James Junwoo Kim, Co-founder of Xangle, said: “The survey findings confirmed our belief that there’s a lot of opportunities and need in the crypto industry for better transparency and visibility for upcoming crypto projects, which can build investor trust and confidence.”
The crypto market saw a boom in ICOs in 2017 and early 2018, several projects emerged with promising whitepapers and a team of advisors, but only a few of them turned out to be successful. The report shows around 55% of the people invested to see a return and most of them learned about the project from friends, family and co-workers. Approximately 33% felt that the project intentionally deceived them and most of them felt that a lack of awareness kept the crypto market in the dark.
Despite all the negative comments, findings indicate that 56% of the investors would make another investment in upcoming ICOs but with more information and research.