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It goes without saying that one of the major reasons for the tremendous interest in Binance-based IEOs is the returns they bring to investors. However, with the last couple of projects bringing minimal ROI, traders are now discussing what would it take for the massive returns to come back.
| Name | Hardcap | CryptoPotato Score | |
|---|---|---|---|
 Band Protocol |
$5.0/10.9 M(46%) | 0unrated | More Infromation |
 Perlin |
Hardcap $6.7 M | 0unrated | More Infromation |
 WINk |
$10.0/16.0 M(63%) | 8.5/10 | More Infromation |
 Elrond Network |
Hardcap $3.3 M | 0unrated | More Infromation |
 Harmony |
$23.0/23.0 M(100%) | 9/10 | More Infromation |
When Will Binance IEOs Pump Hard Again?
Initial Exchange Offerings (IEOs) launched on Binance Launchpad created major headlines at the beginning of the year, as most of them brought massive returns for investors.
Despite every single one of them being successful for the projects raising money, investors were left with a rather sour taste as the last few ones didn’t come close to the returns their previous counterparts brought.
Take the Perlin project, for example. Despite the seriously increased requirements in terms of holding period and the reduced number of winning tickets, the IEO brought returns in the range between 5 and 7 times. While this might seem like a lot, especially for those coming from traditional financial markets, when you calculate the decrease of BNB over the holding period, the actual returns weren’t that substantial at all.
As such, traders and members of the cryptocurrency community are starting to come up with a hypothesis on when IEOs will pump again.
Binance IEOs will pump hard again when:
– Supply has changed hands
– Binance gets their tokens released (seed, partnership/ecosystem)
Very simple
— Mac ❄️🐺 (@MacnBTC) September 16, 2019
Mac is a cryptocurrency trader with a considerable following on Twitter and he thinks that the IEOs will pump hard only when the supply of tokens has changed hands and when Binance gets their tokens released.
Should This Matter, Though?
While enjoying nice returns is definitely the purpose behind IEO investments for most of the retail investors, it’s definitely not the core concept of the idea.
Initial Exchange Offerings were created in order to attract interest in legitimate projects. Additionally, the main idea behind the concept is for investors to spend their money on well-researched projects which are backed by reputable exchanges. The fact that an exchange, as reliable as Binance, is putting its name behind a project is a serious endorsement and, as we can see historically, so far it has worked pretty well.
However, more and more people (if not all) are investing in these projects solely for the returns. Hence, as the returns decrease over time, the interest could fade. This is not only bad for the projects but for the entire field because it shows that people are not really interested in actual developments but rather in solutions that could bring them quick and easy returns.
Meanwhile, Binance has announced the winning tickets for the latest IEO – the Band Protocol. The trading of BAND tokens begins tomorrow and it’s interesting to see how things will unfold this time.