An analysis by The Block shows that, out of the 180 IEOs launched so far, Binance Launchpad has hosted the most profitable ones. The IEO phenomenon has generated a lot of enthusiasm, but most are not profitable.
40 platforms, 180 projects
The block concluded that 40 exchanges have hosted an IEO so far. Most projects were launched by ProBit (32), followed by Coineal with 23 and Bitforex with 14. Of the respected platforms, Binance hosted 6, Huobi 5, OKEx, KuCoin and Bittrex 4 each.
In total, the legitimate exchanges hosted a total of 28 IEOs, of which 18 (64%) were net positive in financial terms.
The best performances were recorded by Bittorrent, Elrond, Matic and WIREX, with an ROI of over 300%. Of these, Binance Launchpad hosted the first three.
Popular but speculative
According to the data provided by The Block, the IEOs are highly speculative and only 12 out of 180 projects produced a 500% return for investors.
Analyst Larry Cermak explained:
“Most investors buy tokens just to sell them at a higher price a few months later, so the price is never sustained. About 75% of the projects have lost 50% of their value from their permanent maximum and 39% of the projects have lost more than 75% of their value since reaching the top level. ”
Given the speculative nature of these tokens, Cermak suggests that investors should be careful about which projects to invest in.
Trade on Binance!
Data show that IEO tokens cannot sustain long-term value. Therefore, the most rational strategy of maximizing profits would be to invest in IEOs facilitated by the most respectable exchanges and to opt for other digital goods for long-term investments.