CoinGecko recently published a report on the crypto market for the second quarter of 2019. The document reveals that Initial Exchange Offerings (IEOs) are steadily increasing and that they raised a total of $262 million with 72 projects in the first half of 2019.
Binance’s IEO platform, Binance Launchpad, began this type of activity in January 2019, raising $7.2 million in just 14 minutes with the BitTorrent token.
The IEOs that have collected the most
The average amount raised for each project was about $3.7 million but the amounts vary greatly from project to project.
The WaykiChain smart contract platform raised the largest amount, with around 18.5 million, followed by Lambda (16.4 million), Poata Token (15.4 million), Blockcloud (15 million) and Top Network (15 million).
These 5 projects received 31% of the total amount collected in the first half of 2019.
“IEO projects seem to have a ceiling of $20 million in amount raised,” says the report.
The report reveals that the amount raised differs not only from project to project but also from exchange to exchange.
According to the study, about 50% of the IEO funds went through the world’s top five exchanges, namely Gate.io, Binance, OKEx, Huobi and Bittrex. They raised $47.6 million, $27.2 million, $24.3 million, $22.7 million and $16.9 million respectively.
The researchers also calculated the ROI (Return Of Investment) of the IEOs that occurred on the main platforms. Binance is the leader with 513%, followed by Gate.io with 505% and Hotbit with 320%.
The ROI of IEOs
Despite these impressive figures, it is worth noting that only half of the IEO projects have been profitable.
If someone had managed to invest equally on all projects, they would still have achieved a positive ROI of 44%.
The highest earnings were recorded by Lambda with a resounding 1874% and by BitTorrent which yielded 1068%.
Other IEO projects, such as Facepower and Aivia, have lost more than 90% of their initial value.