IEO declared dead, but don’t be too quick to bury it

[-Multivitamina-]

The Block’s analyst Larry Cermak declared Initial Exchange Offerings dead, pointing out the concept’s bleak statistics for 2019.

IEOs are still dwarfed by the sums collected via ICOs back in the day. The entirety of the funds collected via IEOs over the only active period in the first half of 2019, which is estimated to be around $1.5–1.6 billion, is smaller than just one single ICO worth 4$ billion. Nevertheless, the model was expected to become the new go-to means of funding, which doesn’t involve conceptual death. How come?

Just last year, the PWC’s 5th ICO/STO Report noted that the development of the IEO model “has been strongly accelerating in terms of completed offerings and funding volume.” According to the paper, in the first five months of 2019, companies raised over $1.5 billion, although two-thirds of the total came from Bitfinex’s fundraising campaign.

The uptrend didn’t last, as Mr. Cermak’s research suggests.

Cermak’s analysis of IEO campaigns on several major crypto-exchanges has shown that only Binance had a positive return on investment. All others had substantial losses.

Cermak also posted information about average returns for particular campaigns. Unsurprisingly, the numbers are predominantly negative. Only 4 projects in the provided data snapshot show positive returns against USD price.

The analyst argues that the data provided are likely a sign of the concept’s death.

Nonetheless, it might be a little too soon to put the IEO concept into the grave.

forklog.media reached out to Alexander Temerev, CEO of Reactivity, and Pavlo Skoroplyas, author, cryptographer, crypto-trader, and miner for an expert opinion on the matter. Here’s their take on the problem.

https://forklog.media/ieo-declared-dead-but-dont-be-too-quick-to-bury-it/

[cytpoway121]

Lemme stick to your subject, ieo basically and technically cannot lure investors in, theres a need for prominent and real achievable projects to show up or hide their face.

Imagine an ieo wishing to raise $20m for a project $2k will fix??

Be sure not to rush to any Crowdfunding

[tippytoes]

Lemme stick to your subject, ieo basically and technically cannot lure investors in, theres a need for prominent and real achievable projects to show up or hide their face.

Imagine an ieo wishing to raise $20m for a project $2k will fix??

Be sure not to rush to any Crowdfunding

This is the reason why investors realized quick that IEOs are no better than ICOs. They may have sure exchange after the crowdsourcing but it doesn't prevent the fact that declining its value is always imminent to their token. If there is no strong hold or foundation about its existence and the supposedly app or product is just a front to attract buyers but in reality they have nothing to offer, then, they are the same as ICOs that are created for money grab. Reputable exchanges should really be tight in accepting those projects and not be lured by the money they will give it to them. For once, they should think of the welfare of their traders and buyers..

[pakhitheboss]

Lemme stick to your subject, ieo basically and technically cannot lure investors in, theres a need for prominent and real achievable projects to show up or hide their face.

Imagine an ieo wishing to raise $20m for a project $2k will fix??

Be sure not to rush to any Crowdfunding

That is absolutely right, raising un necessary funds for projects that do not qualifies has stopped.

Till mid 2018 things were easy for startups, now things have changed investors are not investing blindly. If you have a geniune project people will invest in it.

This situation was bound to arrive after so many scams and false promises by startups.

[Rengga Jati]

This is the reason why investors realized quick that IEOs are no better than ICOs.-snip-

Yes. Actually it is not so different. And probably will end in the same way as ICO. Since investors are not satisfied with the result, they may begin to leave it. But, we are better to see the progress first in the next few months after claiming the end of IEO era.

-snip-They may have sure exchange after the crowdsourcing but it doesn't prevent the fact that declining its value is always imminent to their token.-snip-

Pump and dump are hard to avoid. Even if it is listed on many top exchanges, they cannot control the value of coins/tokens. Most tokens are going to decrease the values after fundraising. That's the classic problem we faced all the time. And once again, it's also happening in IEOs.        

[DarkDays]

Just like ICOs died in 2018, IEOs died on 2019.

I'm betting this year we'll see the rise and death STO's or some other kind of BS crypto-crowdfunding system.

DeFi definitely looks set to explode in 2020, but I wouldn't call that BS, particularly if investments are collateralized and managed through a smart contract.

[X-ray]

The only reason why IEO could garner the attention of the masses and make them tempted to invest is because it instantly got listed on the exchange and initially, an IEO which hosted by popular exchange always giving profit to their investors. Now, the hype has vanished and even though it got listed in an exchange, no one is buying it which means no demand therefore the reason to invest these IEO has gone.

[Coin_trader]

The only reason why IEO could garner the attention of the masses and make them tempted to invest is because it instantly got listed on the exchange and initially, an IEO which hosted by popular exchange always giving profit to their investors.

Precisely. Most of the IEO investors are aiming for easy money through early purchased bonus. The problem on this kind of scheme was after the IEO. The token suffer a terrible price drop which results to loss to many late buyer of tokens. So instead of buying in IEO which is very risky, Many people just wait for it to finish and price plunge then buy the token and make a good position. Only few IEO become successful and still above IEO price bit the majority are garbage.

[ecnalubma]

Lemme stick to your subject, ieo basically and technically cannot lure investors in, theres a need for prominent and real achievable projects to show up or hide their face.

Imagine an ieo wishing to raise $20m for a project $2k will fix??

Be sure not to rush to any Crowdfunding

That is absolutely right, raising un necessary funds for projects that do not qualifies has stopped.

Till mid 2018 things were easy for startups, now things have changed investors are not investing blindly. If you have a geniune project people will invest in it.

This situation was bound to arrive after so many scams and false promises by startups.

Agreed, investors already learned a lot of lessons from previous projects. They are more intelligent now, shitty start-ups will die. The long bear market and rampant scams in the space could probably contributed to the decline of funding.

[letyouearn]

IEO hype was too short and that's because of weak cryptomarket. If this happened during bull run the results could be much more interesting I think. And by the way, there is still a chance of IEOs resurrection if another rally begins in 2020.

[fourpiece]

IEO are not actually dead some projects are still using it, but for now it may be too hard for some projects to attract investors to join thier.ieo project, its not already the same when was IEO first introduce were investors are too excited to join.

[kawetsriyanto]

The Block’s analyst Larry Cermak declared Initial Exchange Offerings dead, pointing out the concept’s bleak statistics for 2019.

Should we believe in this only because of this statement from one person about the death of IEO? Well, maybe he really is an analyst who presents some data, but is it true that IEO will die that easily?

Nonetheless, it might be a little too soon to put the IEO concept into the grave.

Correct. As we know that IEO is one of the newest crowdfunding methods and is considered better than ICO. But unfortunately, one of the most common problems in IEO is related to the exchange chosen to list the token/coin during IEO. When choosing a top exchange, large funds will be needed and not every project can afford it, especially they are new. So they often start from small exchanges that are not even well known.

Yet in my opinion, IEO is still okay because with IEO, we know the potential of a coin when it has entered the exchange then. But IEO may need a change in the regulation to make it better and find out the way how to prevent big decreases after the crowdfunding phase.

[nickenburg]

Im not sure if they are dead already but I just haven't seen a good IEO which i liked.
Most of the IEO's are also releasing on Binance which I dont really use much because they have such High Fee's, I should maybe buy some Binance Tokens to reduce the Fee's.

But they where pretty expensive in the past so I didnt yet, I am hoping there will be a good IEO in the future because I deem them safer then a ICO at the moment.

[davidroux]

Im not sure if they are dead already but I just haven't seen a good IEO which i liked.
Most of the IEO's are also releasing on Binance which I dont really use much because they have such High Fee's, I should maybe buy some Binance Tokens to reduce the Fee's.

But they where pretty expensive in the past so I didnt yet, I am hoping there will be a good IEO in the future because I deem them safer then a ICO at the moment.

Join IEO Binance is the easiest way to make a profit because if you have ever been involved in any project at this exchange, you will feel very happy because the projects listed here will bring you Huge profits. I think IEO will still be the trend that most people choose to invest this year and will surely attract a lot of new investors. However, you don't always get tickets to join IEO here because so many people compete with you when you join.

[bgaf]

IEOs created a lot of millionaire and profit gainers but I hate to admit it but as soon many copy the system it easily fall down. Youre right only Binance IEO would still be remain profitable in terms of IEO campaign. I never saw any project below their selling price once the trading start for that project and of course credits goes to Binance having a popular platform for all traders.

Im sadden with the fact that many exchange imitate it even the projects they are launching isnt worth at all. It's all about money and as long they can get the payment for listing they dont care enough to study whether the projects they are listing is good or legit.

[superving]

Im not sure if they are dead already but I just haven't seen a good IEO which i liked.
Most of the IEO's are also releasing on Binance which I dont really use much because they have such High Fee's, I should maybe buy some Binance Tokens to reduce the Fee's.

But they where pretty expensive in the past so I didnt yet, I am hoping there will be a good IEO in the future because I deem them safer then a ICO at the moment.

Join IEO Binance is the easiest way to make a profit because if you have ever been involved in any project at this exchange, you will feel very happy because the projects listed here will bring you Huge profits. I think IEO will still be the trend that most people choose to invest this year and will surely attract a lot of new investors. However, you don't always get tickets to join IEO here because so many people compete with you when you join.

right ,projects that launches thier IEO on binance exchange is the easiest way to nake profit,  unlike projects were their IEO is being held in exchages like, latoken,p2b dont have any guarantee that you will make profit.