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Data Transparency in Cryptos (Part II)

What happened in the past & what the future holds?

ICO data

 

The story of ICO rating based on data transparency so far…

 

Similar to the credit risk ratings S&P & Moody’s provide, the crypto environment needs an independent research house to provide a data transparency grade to ICOs. With no affiliation to ICOs, and a comprehensive database of over 4,150 ICOs & STOs, InWara is equipped with the capability and resources to deliver this additional value to the crypto community. To ensure no conflicts, InWara accepts no compensation from ICOs/STOs for their rating & companies are welcome to publicly disclose further information to ensure better ratings!

 

How (Methodology) does InWara provide an ICO rating based on data transparency?

 

The complete dataset provided by the ICO/STO is divided into the following sections:

Company Details

This section includes elements like company address, holding company (if any), among others

Token Details 

This section includes all elements of token sale from Sale dates to Hard Caps, among other essentials.

On-Chain Data 

This section includes the paper-trail of token generation, sale and after-sale distribution activities on the blockchain

Documentation 

All sources for claims made by ICOs and STOs

Miscellaneous 

This section will include other details around bonus structure, github activity among others

Based on disclosed information by ICOs, an individual score is designated to every section and individual sections are then used to provide the final letter grade. The expected number of datapoints that ICOs are to provide across these five sections is ~120.

 

ICO rating based on Data Transparency Grade

ICO rating based on Data Transparency Grade

(Source: InWara; Analysis of 4150+ ICOs)

 

This gradation is followed for all ICOs without exception.

 

How has data transparency changed over the years?

 

Methodology for ICO rating
(Source: InWara; Analysis of 4150+ ICOs)

 

The ICO-hype of 2017 is evident from this rating with less than 0.5% of ICOs with Main Sales in 2017 receiving the AA grade. In 2018, this number improved to over 1%, but there is still a lot to be desired. 

 

The number of ICOs in the bottom two grades has dropped significantly, indicating understanding and maturity over time. The biggest gainer has been the A rating where ICOs have hit the sweet spot of disclosing between 75% and 85% of information — just the amount that’s enough to establish credibility.

 

Are STOs the future and have they been any different in their disclosures?

 

Top ICOs according rating by InWara
(Source: InWara; Analysis of 4150+ ICOs and 300+ STOs)

While ICOs have learnt from their mistakes, STOs appear to be going through a learning phase of their own. With just 0.5% of STOs achieving the AA grade, the STOs have started exactly where the ICOs did in 2017. Over 50% of the STOs occupy the bottom two positions, dampening the hype that exists in this space.

 

Are STOs really the next big thing? Part III explores further details in this space! Stay tuned!

 

Download InWara's Trending Research Reports

 

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Monthly Report Jan 2019: Bearish market rends affects private funding in ICOs

 

 

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