Return on Investment for Larger Digital Tokens Hasn’t Been That Good
- Prices of largest tokens have declined sharply since June
- Investors are often better off investing in ether or bitcoin
DFJ's Draper Says Bitcoin Is Transforming Finance
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Initial coin offerings have become the stuff of legend among speculators seeking quick windfalls, yet most people are more likely to lose money investing in digital tokens following the sales.
While more than $3 billion has been raised this year by technology startups using the method to circumvent traditional ways of raising capital, a closer examination shows that gains are often fleeting if the tokens are purchased after the offerings. The Bletchley Ethereum Token Index, which tracks 25 of the largest tokens, including Bancor, Civic and OmiseGo, has dropped by half since June.