BitMEX Reveals IEOs At $39 Million Raised But Project Teams Kept 95% Of Tokens On Average


IEOs Raised $39 Million USD, But Project Teams Kept 95% Of The Tokens On Average, BitMEX Affirms

As you may know, Initial Exchange Offerings (IEOs) are a big trend right now. So far, they have raised over $39 million USD in token sales this year, a news release by TNW and according to a new report which was created by BitMEX Research, which is the analytics part of the crypto exchange.

What jumps to mind more instantaneously is that the investors of the country had plenty of opportunities so far, especially the ones from the Binance Launchpad, which is the most succesful platform so far. However, the companies are not profiting so much for selling the tokens. Why?

Partly because they are not selling so many tokens anymore. ICOs based on the Ethereum blockchain were able to raise $12.8 billion USD so far. This is very high compared to what we have now. The reason is that generally 95% of the tokens are not being sold right now.

Companies sell only a very small share of their tokens instead of almost all of them. Some tokens are used to fund the early development of the companies and others are sold via exchanges later.

So far, the IEO market has a market cap of $907.7 million USD but only $39 million USD of it was actually sold. Because of this, the research team affirmed, there are many chances for these companies to make quite a profit for themselves by selling these tokens later when their economy is stronger.

It seems like a good idea to only dump a share of your tokens in the market at first, following the exact opposite route that the companies followed before.

The analysis ended up by affirming that it had not looked into the individual details of the project so far and that it was hard to say if long-term investors would profit a lot from this new model. The companies emitting the tokens and the exchanges, however, have seemed to find a very important niche to profit from.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide