cryptovest.com
The sale of tokens through exchanges, or Initial Exchange Offerings, became a trend in 2019. The carefully curated projects were meant to replace ICOs, with most exchanges limiting the amount of tokens sold, and only allowing small-scale purchases.
And while those IEOs posed relatively smaller risk for personal finance, most assets still lost as they were dumped on the market. BitTorrent Token (BTT), one of the first IEOs on Binance, has been wiped out, sinking from 33 Satoshi to nearly 4 Satoshi, with diminishing bidding.
The asset also lost close to 90% of its value in dollar terms - and it is not the only token that did this. Elrond Network (ERD) spiked briefly to $0.006, then slid to $0.001. The asset is only making a slow recovery on almost non-extant volumes.
Fetch.AI, which launched with a trading price of $0.42, also sank rapidly, losing around 90%. Despite the mainnet launch, FET continued to lose, erasing another 8% in the past week, to go down to $0.04.
Matic (MATIC) is among the rare exceptions. The asset started trading around 71 Satoshi, and has gone through several peaks. Now, MATIC is around 225 Satoshi, a significant growth in BTC terms, as well as dollar prices. But the recent price arrived only after a significant pump-and-dump event.
One of the reason for the relatively slow performance of IEO tokens is the low liquidity. In 2019, those new tokens were added to a market that was already culling most smaller digital coins and tokens. Despite the hype, the newly arrived assets did not fare so well, as the memory of ICO tokens was still fresh.
IEOs continue, and may keep appearing in 2020, though the potential for gains comes with a hefty dose of risk. Despite the potential qualities of the projects, most tend to sink lower.