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87,000% Profit During Half a Year. The Highest ROI ICOs Analysis

We have analysed Top 5 ICOs with the highest ROI and have found out what they have in common and how you can try to predict profitability.

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Cryptoassetsrank.com Published on Jul 03, 2018
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We have analysed Top 5 ICOs with the highest ROI and have found out what they have in common and how you can try to predict profitability.

Return On Investment or ROI is a ratio between the net profit and the cost of investment into highly liquid assets that is measured in percentage. The higher the ratio, the bigger is the profit. If the ratio is negative, the investor has suffered losses. For example, if ROI is 100%, the investor has doubled his or her investments, if ROI is -50%, he or she has lost half of the invested money.

Where and why is ROI used?

In case of stock markets and capital investments, this ratio is used to evaluate the return on investment and to compare the efficiency of several projects. On the cryptocurrency market, it is used to evaluate the prospects of investing into an existing project or an ICO. As opposed to the financial sector, ROI for the tokens and ICOs is calculated for shorter time periods: a day, a week or a month.

How to calculate ROI?

In order to calculate ROI, the profit from the investments is divided by the cost of those investments:

ROI = (gain from investment - cost of investment) / cost of investment * 100%

  • Gain from investment is a sum total of all the profit generated by the investments, including their sale at a "fair value". For example, in case of stocks, these are dividends or dividends plus the cost of stocks if the stocks have not yet been sold at the stock exchange.
  • –°ost of investment is the invested money plus all the expenses incurred in connection with the investment. For example, in case of stocks, it is the price of the stocks plus the stock broker's fees.

Let us suppose that you invested $200 into stocks and sold them a year later at a price of $300. In order to count ROI, you need to make the following calculations:

($300 - $200) / total investment expenses $200 * 100% = 50%

In this case ROI is 50%.

When ROI is calculated for the cryptocurrency coins that have already been released or for an ICO, almost the same formula is used but instead of the gain from investment the current token value is used, while instead of the cost of investment the initial token price is used.

  • Current token value is the cryptocurrency price at the currency exchange at present or at the moment of its sale.
  • Initial token price is the price of cryptocurrency at the time of record or at the time of actual investment. If ROI is calculated from the start of a blockchain project, the reference point is the price of coins at the end of the initial coin offering, i.e. the ICO price. It is calculated by dividing the total amount of money raised during the ICO by the number of tokens sold. If there was a bounty campaign, the number of distributed tokens should be added to the amount of the sold coins.

Which projects have the highest ROI and why?

The first five cryptocurrencies with the biggest ROI are scalable infrastructure projects that were created to maintain or improve blockchain technologies. Such projects can be expanded with the help of user applications or new cryptocurrencies that will be operating on the basis of the main platform.

Five tokens with the maximum ROI according to aicostats.com

  1. NXT is an ecosystem with a built-in support of user applications, including the support of cryptocurrencies. At the same time the NXT platform itself is not a cryptocurrency.
  2. IOTA is a crypto platform for the data market and launch of applications connected with this segment.
  3. Ethereum is an ecosystem for launching user applications, new cryptocurrencies and is the first token with smart contracts.
  4. NEO is a Chinese counterpart of Ethereum.
  5. Stratis is a British counterpart of Ethereum with an option to create applications using software programming languages C# / .NET.

ROI monsters: ICO leaders and losers of the past years

Leader and loser of 2016

The most profitable blockchain project of 2016 was the ARK ecosystem. Its main difference from the other cryptocurrencies that were launched at the same time or earlier was the presence of SmartBridge. Due to these bridges ARK can communicate with other blockchains converting its coins into other coins or transferring important information. It was a revolutionary innovation that allowed the ARK token become a leader in 2016 demonstrating the ROI of 32,000%.

The table of tokens with the best and the worst ROI in 2016

The lowest ROI (-98%) in 2016 was demonstrated by the Arcade Token, a counterpart of UBER. Despite the failure of this startup in 2016, now it is demonstrating a much better progress: by the middle of 2018 the token price has grown from $0.046 to $4.3.

Leader and loser of 2017

Last year the maximum profit (42,000%) was provided by Spectrecoin. This project is aimed at maximum anonymity of financial data. Its main difference is the use of TOR proxy servers network for anonymity of interaction between the users.

The table of tokens with the best and the worst ROI in 2017

The worst project in 2017 with ROI -100% was PlusCoin. It is a cashback service where the buyers receive tokens (instead of discounts or a cashback) that can be spent on goods and services. In 2018 this project has not been able to recover: since the beginning of the year the PlusCoin price has dropped 34% more.

Leader and loser of 2018

Since the year 2018 has not finished yet, it is not possible to indicate the final leader and loser of the year but so far CargoX has been the leader demonstrating the ROI of 87,000%. The project will help to minimize bureaucratic procedures on the logistics market. The blockchain project demonstrating the lowest ROI (-99%) as of the middle of March 2018 is Titanium Blockchain, which is another crypto platform with quick transactions and high anonymity.

How is ROI predicted?

Fundamental analysis is a sum total of all fundamental facts that can influence the cost of an asset: long-term benefits of the idea, the team of developers, marketing policy, the presence of partners and advisors and dozens of other factors. All of this does not allow us to know the exact figure of the predicted ROI, that is why an approximate value is indicated, for example, not less than 200% or higher than 1,000%.

Technical analysis is a transfer of the indices from the past years to the future by analysing the exchange rate chart or statistical data. As a result, exact figures can be received but they are hypothetical because the technical analysis does not take into account the influence of fundamental factors and the market's volatility.

Now, after upgrading your knowledge, you can try to predict ROI of some projects, using our ICO list.

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