• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Price & Market
Cap Data from
Nomics Logo Nomics Logo
Bitcoinist.com
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
Bitcoinist.com
No Result
View All Result
IEO profitless
Nexo

Just 64% of Legitimate IEO’s Were Profitable, New Data Shows

Eustace Cryptus by Eustace Cryptus
2 years ago
in News, News teaser
0

Research from The Block shows that while some IEO’s have been wildly successful, the majority are not profitable for investors.


IEOs are Popular but Not Always Profitable

On Wednesday blockchain and cryptocurrency researcher, Larry Cermak posted an intriguing Twitter thread about the performance of IEOs in 2019.

According to The Block head of research, about 180 blockchain projects secured funding through an internal exchange offering (IEO) and currently 40 exchanges have hosted at least one IEO. 

Cermak wisely chose to focus only on legitimate exchanges instead of those known for pump and dumps, and manipulated trading volume. Legitimate exchanges hosted a total of 28 IEOs, of which 18 (64%) were net positive in USD terms. It is also notable that less than half of these projects outperformed Bitcoin. 

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Binance Leads in Profitable IEOs

Binance currently leads the sector in hosting successful IEOs which comes as no surprise given the exchange’s international reach and capacity to list a vast array of coins. Aside from Binance, four relatively unknown exchanges (Coineal, Exmarkets, Bitforex, and ProBit) hosted 45% of all IEOs. 

According to data provided by The Block, the allure of IEOs is overwhelmingly speculative and in 2019, 12 projects produced a 500% return for investors. Cermak explained that: 

But because most of the investors buy the tokens just to sell them for a higher price a few months later, the price is never sustained. About 75% of projects have lost 50% of value since their all-time high and 39% of projects lost more than 75% of value since reaching their all-time high.

Data shows that there is a strong relationship between a token’s price fluctuation from it’s all-time high and the number of days that passed since the token sale listing. 

Given the speculative nature of these token listings, Cermak suggests that investors should take care in choosing which projects to invest in and advises that they should not sit in any particular IEO token for too long. 

Cermak concludes that roughly 75% of projects dropped 50% of their value since reaching an all-time high and he observed that: 

The data shows that IEO tokens can’t sustain value over the long term. The most rational strategy to maximize profits would, therefore, be to invest in IEOs facilitated by the most successful exchanges and not to hold over the long term. Long term, invest in something else.

Do you think IEOs are the new ICO or just a way for exchanges to increase volume and price for their native exchange tokens? Share your thoughts in the comments below! 


Image via Shutterstock, Twitter: @lawmaster

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Eustace Cryptus

Eustace Cryptus

Educator by day, crypto zealot at night. I scour charts, swing trade & ponder blockchain’s ability to transform cities, commerce and the entire banking system as we know it!

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2021 Bitcoinist.com. All Rights Reserved.
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.