2019 Year in Review for Retail Investors: The IEOs We Invested in Together

A recent study shows that Initial Exchange Offerings (IEOs), which were launched and gained popularity earlier this year, have gradually cooled off, with almost all IEO projects experiencing a decrease of over 80% in value.

Since the beginning of 2019, the craze of Initial Exchange Offerings (IEOs) has swept the cryptocurrency market. However, a study by the mainstream margin trading platform BitMEX shows that the craze has come to an end, with some projects plummeting by as much as 98%.

The Decline of the IEO Craze

In fact, back in May of this year, BitMEX criticized IEOs as nothing more than a rebranding of ICOs:

IEOs seem to be an attempt to rebrand the "C" in ICO to "E" in order to distance themselves from the various bad reputations of ICOs.

BitMEX mentioned that despite the continued strong rise of Bitcoin since May, the 11 IEO projects they tracked all experienced significant declines during this period when measured against their initial trading prices.

BitMEX pointed out that Binance's IEO project Matic was the only exception, with a surge of up to 255% compared to its initial trading price.

If calculated based on the IEO public sale price, more than half of the projects still suffered significant losses, with only projects issued by Binance such as Bread, DOS Network, Matic, and BitTorrent maintaining profitability.

Previously, ABM also reported that "over half of IEOs performed worse than Bitcoin." At that time, cryptocurrency researcher from The Block, Larry Cermak, emphasized:

Because most investors are just buying tokens to sell them at a higher price a few months later, the price will never sustain. About 75% of projects have dropped by 50% from their all-time highs, and 39% of the projects have dropped by over 75% from their highs.

Overall, the attractiveness of IEO projects largely stems from speculation and high returns. Considering the high speculative nature of these projects, investors should carefully select investment projects and avoid holding any specific IEO tokens for extended periods.

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