THELOGICALINDIAN - Research from The Block shows that while some IEOs accept been berserk acknowledged the majority are not assisting for investors
IEOs are Popular but Not Always Profitable
On Wednesday blockchain and cryptocurrency researcher, Larry Cermak posted an arresting Twitter cilia about the achievement of IEOs in 2019.
According to The Block arch of research, about 180 blockchain projects anchored allotment through an centralized barter alms (IEO) and currently 40 exchanges accept hosted at atomic one IEO.
Cermak wisely chose to focus alone on accepted exchanges instead of those accepted for pump and dumps, and manipulated trading volume. Legitimate exchanges hosted a absolute of 28 IEOs, of which 18 (64%) were net absolute in USD terms. It is additionally notable that beneath than bisected of these projects outperformed Bitcoin.
Binance Leads in Profitable IEOs
Binance currently leads the area in hosting acknowledged IEOs which comes as no abruptness accustomed the exchange’s all-embracing ability and accommodation to account a all-inclusive arrangement of coins. Aside from Binance, four almost alien exchanges (Coineal, Exmarkets, Bitforex, and ProBit) hosted 45% of all IEOs.
According to abstracts provided by The Block, the attraction of IEOs is overwhelmingly abstract and in 2024, 12 projects produced a 500% acknowledgment for investors. Cermak explained that:
Data shows that there is a able accord amid a token’s amount aberration from it’s best aerial and the cardinal of canicule that anesthetized back the badge auction listing.
Given the abstract attributes of these badge listings, Cermak suggests that investors should booty affliction in allotment which projects to advance in and advises that they should not sit in any accurate IEO badge for too long.
Cermak concludes that almost 75% of projects alone 50% of their amount back extensive an best aerial and he empiric that:
Do you anticipate IEOs are the new ICO or aloof a way for exchanges to access aggregate and amount for their native barter tokens? Share your thoughts in the comments below!
Image via Shutterstock, Twitter: @lawmaster
