InWara - ICO Database, ICO review, Security tokens and more

Data transparency across industry sectors: Trading and investing triumphs, Blockchain dead last.

 

ICO research

 

Initial Coin Offerings-ICOs were a rage among entrepreneurs and investors alike until 2017. This space was not as regulated as the traditional fundraisings like an IPO or Venture Capital. Investors were hooked by the astronomical returns on their crypto assets and entrepreneurs realized they could easily raise capital to propel whatever audacious idea they had in mind. It’s no surprise that coin offerings gained so much popularity in the short period since its inception.

 

Data transparency could revolutionize the crypto space

 

Despite the growing popularity of coin offerings and asset tokenization, a surprising number of companies fail to reveal some very crucial data. Ironically, industries off the Blockchain are looking for ways to increase data transparency, while the same cannot be said for the crypto market space.

 

Percentage of ICOs/STOs that revealed critical data

 

Source: InWara

 

As the crypto market space is populated with many bad actors, the sector gained notoriety, and so InWara believes the next progressive step is to bridge the gap between enterprises and investors by developing a spirit of trust and transparency. As a harbinger of this spirit InWara, an independent research-house, provides a factual grading to all concluded, upcoming and active ICO/STOs in the market space. This grading is meant to help users differentiate the bad actors in the market by their relatively low transparency grading and concurrently help build credibility to worthy enterprises. 

 

Data transparency grading is similar to the credit risk ratings provided by S&P & Moody’s except that, DTG will aim to bring more clarity to investors about their crypto assets.

 

InWara’s Data Transparency Grading (DTG) across industry sectors

Source: Inwara

 

Financial services 

 

Financial services have consistently been dominating the Blockchain and crypto industry sector, in terms of the number of ICOs and the same trend is observed in the Data Transparency Grading as well. Among all the sectors, Blockchain enterprises in Financial services were the highest to pass the minimum requirements to get a Data Transparency Grading. Among the 507 ICOs/STOs that passed the minimum requirements to get graded, only a measly 0.78% have a data fill rate of disclosed data above 85%, which translates to ‘AA’ grading. Interestingly financial services sector is performing better than the industry average of 0.72% ICOs with ‘AA’ grading. Around 156 ICOs/STOs, ~30% have a fill rate of disclosed data between 75–85% which translates to ‘A’ rating, which is well below the industry average of 35%. Interestingly, 347 ICOs/STOs in Financial services sector, ~68% has a fill rate of disclosed data less than 75% which is akin to a Data Transparency Grading of ‘B’ or lower. This value is well above the industry average of 64%, indicating some lack of transparency. 

 

Trading and investing sector leads the pack 

 

Over 300 Blockchain enterprises in trading and investing sector have passed the minimum requirements to get a data transparency grading, which is among the highest in the crypto space and only second to Financial services. Among the 308 ICOs/STOs that were awarded a grading, over 1.5% have a data fill rate of disclosed data above 85%, which translates to ‘AA’ grading. Surprisingly trading and investing sector is performing 100% better than the industry average of . 0.72%. Around 112 companies, ~36.3% have a fill rate of disclosed data between 75–85% which is akin to a ‘A’ rating. This value is slightly higher than the industry average of 35%. 191 ICOs/STOs in trading and investing sector, ~62% has a fill rate of disclosed data less than 75% which is akin to a Data Transparency Grading of ‘B’ or lower, this value is slightly lower than the industry average of 64%, signaling that this sector is performing better in all terms in terms of data transparency. 

 

Fintech

 

Fintech is among the leading sectors in the Blockchain and crypto space, around 179 ICOs/STOs managed to pass the minimum requirement to be awarded a Data Transparency grading. In spite of this no company managed to get a ‘AA’ grading, which is concerning for a leading sector in the crypto space. Around 56 companies, or ~32% were awarded a ‘A’ grading, which is lower than the industry average of 35%. 117 companies, ~67% were awarded a ‘B’ grade or lower which is significantly higher than the industry average of 64%. Overall it can be concluded that Fintech sector is plagued with a lack of data transparency.

 

Sectors performing higher than industry average DTG

 

Source: Inwara

 

When considering all Blockchain industry sectors, the average percentage of ICOs/STOs with a fill rate of disclosed data between 75–85% and above 85% which is akin to a Data Transparency Grading (DTG) of ‘A’ or ‘AA’ respectfully, is 35.6%

 

Among the top ten industries that were initially considered only five of them namely, Healthcare, Trading and Investing, Gaming, Business Services, Media and Entertainment have performed better than the industry average. Healthcare sector clearly dominating with over 40% of ICOs/STOs awarded an ‘A’ grade or higher. Gaming and Trading & investing sectors closely follow at 38%.

 

Sectors that disclosed the least data

 

Source: Inwara

 

In light of the various industry sectors that were considered, Technology , FinTech, Cryptocurrency, Financial Services and Blockchain were the worst performing industries in terms of Data Transparency. Ironically, Blockchain sector which aimed on increasing data transparency in the real world, is the worst performing sector at only ~28.6% ICOs/STOs being awarded a Data Transparency Grading of ‘A’ or higher.

 

The data not provided by these companies could include key elements such as fund allocation plans, roadmap and token distribution details, which are crucial to properly understand a project’s vision and plans. Which is why a data-driven analysis of an ICO/STO is quintessential in the crypto marketspace.