Bitpanda IEO Followed by Rapid Sell-Off

Buyers into the long-awaited sale of the BEST token were left disappointed, as the token price quickly wiped out half its value.

Bitpanda’s IEO angered initial buyers, which entered at a price of 0.09-0.10 euro. One of the biggest European exchange-based token sales followed the path of other IEOs, with immediate price dumping. While the BEST token recovered to about $0.07, it is still way below the initial sale price.

https://twitter.com/AwsmOli/status/1159143593828855812

However, in the long run, BEST is betting on the success of the Bitpanda Exchange, a new market that will gradually build its liquidity. The asset will work as a native token and form base pairs, potentially boosting the price. BEST will aim to work similar to other native exchange tokens, such as Binance Coin (BNB), with regular burns to decrease supply.

The BEST token will be further distributed to Bitpanda verified users, as well as buyers into the previous ICO, for Pantos token (PAN). Eligible users must have a complete verified Bitpanda profile, and for the additional airdrop, hold more than 500 PAN. The airdrop, arriving this Monday, may further lead to initial selling pressures.

The rapid slide in the BEST price even led to suggestions that IEO buyers may contact European regulators:

https://twitter.com/AlgerianRelief/status/1159293216870608896

Traders have speculated about concerted selling, so that some investors could buy up more BEST at a depressed price. BEST trading volumes are still relatively slim, allowing for rapid price moves, including a 70% drop at one point.

IEOs remain risky, with no guarantee of price growth, even for the best hand-picked projects. In the case of Bitpanda, the IEO was available to retail investors, with a long sale period, managing to attract a larger group of buyers.

The BEST token is yet to be used for paying trading fees on the Bitpanda Exchange, which launched last Wednesday, but the possibility will arrive soon, giving a solid use case to BEST.