Interest in IEO begins to subside

According to TokenInsight analyst firm, the hype surrounding the initial public offerings (IEO) is fading.

TokenInsight researchers evaluated the amounts collected on IEO and concluded that the boom lasted only 3 months and is now experiencing a gradual fading. The company relied on data from the CoinSchedule portal, according to which IEO raised $ 153 million in April and $ 1.2 billion in May. In June, the amount of funds raised fell by 88% compared to the previous month and amounted to only $ 125 million.

The authors of the report suggest that the sharp rise in the popularity of IEO may be due to the growth of bitcoin, the price of which only increased in May from $ 5,000 to $ 9,000. Subsequently, the rate of the first cryptocurrency continued to grow, but at the same time, the amount of money received in IEO fell sharply.

Some projects were able to rise in the wake of the popularity of IEO, which still does not even come close with hype around the ICO in late 2017 – early 2018, but many startups did not live up to their expectations. For example, the BitPanda exchange conducted an IEO for the token of its new crypto-fiat platform. Investors counted on high trading activity, so the token can repeat the success of Binance Coin or Huobi Token, but the trading volume on the site rarely exceeds $ 3 million per day.

Read This Now: The "US Dollar" of the Crypto Money Market Exceeds 7 TL!

Analysts drew attention to the fact that the inflation of the IEO bubble was launched by the Binance exchange, which this year restarted Launchpad – its platform for IEO, which was opened at the end of 2017. Other marketplaces, inspired by the success of Binance, also began to organize the IEO, but not with such overwhelming success.