The University of Luxembourg published its own study, during which experts analyzed 100 different ICOs and found evidence of a speculative bubble.
In particular, criticized were pre-sales, conducted by 60% of the ICO organizers. Usually, during pre-sales, tokens are sold to a limited group of investors who create a “pump-and-dump” scheme and sell the acquired tokens immediately after the end of the main ICO.
In addition, there are a number of other dangerous signs, which should be taken into account by those wishing to invest in ICO projects. For example, experts are concerned that information about guarantors and issuers in white paper of most projects is very limited, and often doesn’t include contact addresses, for instance, physical or postal one. Experts found correct address only in 40% of white papers, and 18% has no information about the issuers at all. Legal information on the campaigns is also not indicated: 70% of the reviewed projects has no legal information about the campaigns.
Experts stressed that in fact, most ICOs are in the gray zone and use legislation gaps for their work.