When it comes to exchange-based token sales, or IEOs, the liquidity and publicity of Binance offer the biggest boost to participants.
Binance-based IEOs line up as some of the most successful projects, managing significant returns. But tokens sold on Huobi and KuCoin are close behind. IEOs did not prove to be a big wave but ended up becoming a niche source of significant returns during the last few months of altcoin rallies.
Matic Network becomes the leading token for gains on Binance, with a 1,719% increase, and most successful token sales are concentrated on the leading Asian exchanges, including OKEx, Huobi, and KuCoin.
Bittrex IEOs remains the weakest, still managing a two-fold increase in prices. Smaller, less liquid token sales lag far behind, besides offering too big a risk.
BitTorrent Token (BTT) grew by a total of 1,542% between its token sale price and the all-time high.
However, IEOs do not guarantee returns, and in fact peak prices last for a very short time. Tokens go through a price discovery stage, and some have tanked significantly after the initial euphoria.
Binance, however, remains a factor for its small selection of tokens, where liquidity still boosts the prices. MATIC is up 24% this week to $0.024. BTT, however, is lagging again, returning to $0.0011. Fetch.AI (FET) is on the recovery, up 34% on a weekly basis to $0.23.
The OKEx exchange still takes the lead with its BlockCloud (BLOC) IEO, up 1,811% from sale to peak. A few robust projects have grown five-fold following the token launch, including FET and Celer Network (CELR).
IEO sizes are also smaller compared to unrestricted token sales, or ICOs. The Celer Network IEO is one of the largest, raising $34 million’s equivalent. Usually, Binance restricts the number of tokens to be sold and aims for a sale of around $5 million.
Binance is taking its time with the announcement of the next IEO, but smaller markets are already showing their next offering.
With Bitcoin (BTC) still close to $8,000, there is enough optimism to boost the interest in new token offerings. Total token sales, based on ICO Data, have exceeded $100 million in May, and there are new offerings coming from security token markets, classic ICOs, as well as airdrops.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.
by Christine Masters,