Poor Performance of Crypto IEO Makes Investors Lose up to 98%
The launch of Initial exchange offerings (IEOs) happened in 2019. However, an incriminating new statistics reveals that they have lost a maximum of 98 percent of their money.
On December 23, a latest report was published on the issue by BitMEX Research and it mentioned 12 leading IEOs that launched in 2019. Eleven of the IEOs are at the moment almost without worth in comparison with the price at which they first traded on exchanges.
BitMEX Research maintained that their performance since the time they launched has been poor. It is such that nearly all the tokens have declined by more than 80 percent.
When compared with the price that the organizers first offered the IEO tokens, the numbers are just somewhat better. Four IEOs were able to deliver returns to investors and they performed between 7.9% and 490%.
The performance of Matic was 490% and it was launched on Binance. When compared with the initial exchange price, Matic is up 255% in spite of the mixed opinions concerning its origin recently.
According to the report of Cointelegraph, a sudden 60% drop in the value of the token happened after a strange activity on markets. Then, those who created Matic denied any foul play, and the CEO of Binance issued a statement to support their innocence.
BitMEX Research maintained that the performance of Maticdid not put IEO investors into an awful situation. The report indicates that:
“This volatile token has appreciated in value since it listed.”
There is a difference between IEOs and ICOs. The difference is that for IEO, there is direct listing of the tokens by an exchange through its own dedicated launchpad. People have been criticizing the fundraising tool since the launching of the first projects, with concerns now about the sector’s ability to gain long-term credibility.
In the previous weekend, Tone Vays maintained that the forecast for all altcoins seems increasingly gloomy. Based on estimation, he said that the general market dominance of Bitcoin will grow to 85% in the coming year.