Initial Exchange Offerings Deliver Mixed Performance as We Look at 5 Popular Sales
Token sales through exchanges lead to fast gains after the initial listing, but trading those tokens often led to losses.
Initial exchange offerings, or IEOs, are a form of token sales vetted and hosted by crypto exchanges. In the past few months, both leading market operators and niche exchanges have launched several offerings. While larger market operators are more conservative and limit the number of offerings, others are extremely active, with token sales too numerous to list.
The most high-profile IEO was also the first one, BitTorrent Token (BTT), which followed the much-publicized acquisition of BitTorrent by the TRON (TRX) project. The IEO on Binance Launchpad immediately peaked from $0.00047 to $0.001, while now the price hovers at $0.0008, scoring gains above the IEO price, but also causing losses for traders in the past month.
Matic Network (MATIC), another high-profile Binance IEO, has performed better. MATIC started trading at $0.0004, and peaked at $0.001, later falling to $0.0007. This IEO has not failed secondary traders.
Fetch.AI (FET), however, failed to bring trading gains. After the initial spike to $0.20 right after listing, FET fell to $0.13 over the course of about a month. The asset remains volatile, potentially allowing for short-term gains.
VeriBlock (VBK), a project known for causing a months-long extraordinary load on the Bitcoin (BTC) network, is underperforming as an IEO. Despite the high-profile status and the listing on Bittrex, VBK went for a long slide from $0.10 right after the listing, down to $0.03.
Celer Network (CLR) is yet to recover its starting price of $0.02. Now, the asset is trading at around $0.01 after a few days of growth.
Other IEOs coming from less reputable exchanges are showing even weaker performances and deep losses for traders. IEOs remain risky, despite possibilities for 200-500% from the initial sale price. With most IEOs being immediately sold, it is too early to say whether the new projects and tokens can survive long-term and show more robust price growth. For smaller-scale, more obscure IEOs, the risks are not different from those during the ICO hype.