Every Top IEO Lost 80% of their Value Except One with Tremendous Gains


  • Relative to IEO offering price, four of twelve ICOs in red out of which three belong to Binance

2017 was all about Initial Coin Offerings (ICO) but that trend has been all fazed out. In Q1 of 2019, ICOs raised about $118 million, which has been more than 58 times less than the $6.9 billion raised during the same period in 2018. During this period, Security Token Offerings (STOs) saw an increase of 130%.

But the prevalent trend of 2019 as been Initial Exchange Offerings (IEOs). With ICO market down 97% in Q1 2019 (YOY), exchanges or trading platforms conducted the issuance and sale of a token.

IEOs raised $38.9 million as of April 25th with Binance as the most prolific platform. BitMEX in its first research piece on IEOs, however, has been skeptical of this in the long term.

Looks like, it may have been right.

In crypto derivative exchange’s update on the investment performance of IEO projects reveal that all eleven of those projects have declined significantly in price since May 2019.

Since May 2019, while the leading cryptocurrency Bitcoin appreciated in value, going from $5,300 in May to $13,900 in late June to back at $7,550, these IEO projects lost a good portion of their value during this period.

IEO Investment Return Since The First Exchange Traded Price

Relative to the first traded exchange price of these IEOs, their performance to date has been “poor,” with almost all the tokens down over 80%. There's only one exception to this and that’s Matic, a Binance IEO.

The IEO price itself is normally lower than the first traded price on exchanges, which is to allow the participants to earn the quick buck as the token lists and soars. When it comes to the IEO investment return versus the offering price, the performance is more of a mixed picture.

The majority of the tokens still have fallen relative to the offering price but four of those generated positive investment returns. Three of these Bread (129.2%), Bittorrent (101.7%), and Matic with a whopping 493.2% gain belong to Binance platform while one Dos network was issued on BitMax.

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