More than a half of cryptocurrency start-ups stop development and show no activities within 4 months after they complete initial coin offering.

Four months is an average period for 56% cryptocurrency projects to scale down all their activities, a study of Boston College (USA) reveals. The authors of the work, associate professor Leonard Kostovetsky and graduate Hugo Benedetti, studied the intensity of posting messages in startups' Twitter accounts. The researchers studied 2,390 projects which completed crowdsales before May 2018. As a result, it turned out that only 44.2% of start-ups remain active after 120 days after their ICO ends.

Thus, according to Kostovetsky, the most secure and profitable investment strategy is to acquire tokens during ICO and subsequently sell them within the first month after the ICO ends. The maximum retention period for tokens should not exceed six months.

"People often look at returns and say this is a great deal, but we teach in finance that return is a compensation for risk," Kostovetsky said. "These are stakes in platforms that have not yet been built, that have no participants yet. There’s a lot of risk. The majority of ICOs do fail."

In addition, the study showed that returns of people who sold tokens on the first day they were listed on an exchange have been declining by four percentage points a month