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Will IEOs be dealt the same fate as ICOs? Or will it chart its own path?
Exchange offerings seem to be the new “in-thing” within the cryptocurrency space. In the span of six months, several exchanges have set-up their own ‘launchpads’ and are inviting companies to launch their tokens, with incredible success.
Although the exchange launch system, that later came to be known as initial exchange offerings [IEOs], started 2019 with a bang thanks to Binance hosting the BitTorrent token sale, the rest of the first quarter saw little improvement. However, thanks to the Changpeng Zhao-led exchange, exchange offerings are soaring.
The Q2 report published by data markets aggregator, CoinGecko, stated that IEOs recorded a marked improvement in performance, a whopping 550 percent compared to the previous quarter. Though the months of April, May, and June saw varying number of IEOs listed and amounts raised, by and large, their valuation was $190 million ahead of the same metric in the first three months of the year.
Source: CoinGecko
April saw 34 projects listed generating $109.8 million, the highest in the entirety of 2019. May and June saw 16 projects listed each. However, the former raised $30.6 million, while the latter raised $87.1 million. Together, the second quarter saw $227.6 million raised or 86.83 percent of the total for the year.
In comparison, there were only 6 projects listed between January and March, with the total amount raised being $34.5 million. Binance platformed BTT in January, raising $7.2 million in less than 15 minutes.
All in all, 72 IEO projects were listed in the first half of 2019, generating $262 million or $3.7 million per project. 66 of those projects were listed in Q2.
In terms of top IEO projects, CoinGecko reported WaykiChain, the smart contract platform that saw its token go live on Gate.io, take the top spot with $18.5 million, followed by Lambda ($16.4 million), PDATA Token ($15.4 million), Blockcould ($15 million), and Top Network ($15 million).
The report concluded,
“IEO projects seem to have a ceiling of $20 million in amount raised. Only 5 projects raised more than $10 million via IEO. They represent 31% of amount raised in H1 2019.”