Many people think that IEOs (Initial Exchange Offerings) are in the same market position as ICOs (Initial Coin Offerings) were until a few months ago. Both are fundraising activities and as such involve not only private investors but also companies and entire societies. Here is what has happened to the best IEOs of 2019.
The best IEO: Gatechain Token (GT)
In contrast to what most people may think, the largest amount ever raised did not involve Binance or any of its IEOs. The platform is Gate.io, while the Gatechain (GT) token refers to the cryptocurrency of the homonymous Asian exchange.
In a blog post on April 12th, Gate.io announced that it had raised over 83 million dollars in the sale phase, a record figure that has never been reached before with an IEO. The objective is to compete with Binance: the roadmap foresees the introduction of a decentralised exchange and the launch of the mainnet in the fourth quarter of this year.
Within the crypto landscape, Gate.io is definitely one of the leading exchanges, both in terms of trading volumes and the way in which the IEOs are conducted. In addition to Gatechain (GT), other projects have also seen important figures and an excellent ROI (Return On Investment).
In mid-July, Sero (SERO) was performing well, recording a 29-fold increase from the initial value. GoWithMi (GMAT) also managed to maintain a 5x of the value.
Armors Labs (ARM) is a project based on the Haskell programming language. The IEO was launched at the end of the first quarter of 2019 and immediately managed to reach the hard cap set at $40 million. The fundraiser was managed by the Bgogo exchange and was undoubtedly one of the best IEOs of 2019.
However, there is little information about the progress of the current project and whether the development times set by the team are being met. After the IEO there was a drastic decline in interest that brought the token to a market capitalisation of $600,000. According to data available on CoinGecko.com, ARM is registering a -94.1% since its ATH reached on July 19th.
BitTorrent (BTT) was the first project launched on Binance. When Binance Launchpad entered the IEO industry, things were very different. In any case, the BitTorrent (BTT) IEO was completed in two different stages: one with BTT/BNB and one with BTT/TRX. Both were completed within 15 minutes with the hardcap being reached.
At this moment, BitTorrent (BTT) is in 45th position according to CoinMarketCap, while its ATH was reached on May 28th of this year and, since then, the token has lost about 70% of its value. The IEO has raised $7.2 million and is clearly one of the best in 2019.
1 second: this is the record time it took to reach the hard cap of 15 million dollars. BlockCloud’s IEO was completed on OKEx and the project involved the Chinese company Shenzhen Oudmon Technology, which has been involved in the Internet of Things (IoT) sector for years and has more than 8 million connected devices.
Currently, BLOC has a very negative ROI of about -30% and has lost more than 95% since its April 11th ATH. The speed with which the $15 million was raised was certainly impressive, a timing that beat not only all the ICOs but also the IEOs, including Bittrex’s VeriBlock (completed in 10 seconds) and Binance’s Fetch.AI (completed in 22 seconds).
Although several million dollars were collected in 2019, IEOs are still a phenomenon in strong trend even if the latest data, at least as far as Binance is concerned, show that the interest in these projects is fading, since the profit that users can make is decreasing, especially considering the fact that they are forced to hold the BNB token even when the price drops dramatically, as happened in recent months.