IEOs are unsustainable, but for now Binance is outperforming the competition

Quick Take

  • Approximately 180 projects raised funds through an IEO while at least 40 exchanges facilitated at least one IEO
  • The legitimate exchanges have had 28 IEOs combined, out of which 18 (~64%) have had a positive return in terms of USD; less than half of the projects have outperformed bitcoin
  • About 75% of projects have lost 50% of value since their all-time high
  • The data shows that Binance has, by far, the highest average USD return on IEOs across the examined exchanges while Bittrex has the lowest (and negative) USD return

Initial Exchange Offerings (IEOs), token fundraising events administered by an exchange, have become a theme of 2019 — just as ICOs became a theme of 2017. In contrast to ICOs, projects that have an IEO sell a relatively small portion of the supply (<10%) and had a hard cap of less than $10 million.