Nearly
All IEOs Are Down 80% or More, BitMEX Report Shows
A report published by the research arm of
cryptocurrency derivatives exchange BitMEX has show the initial exchange
offering (IEO) trend was unprofitable for investors so far, as most projects
launched on cryptocurrency exchanges saw their prices drop 80% or more since
launch.
BitMEX Research analyzed twelve
major IEOs launched this year, and found that eleven of these lost most of
their value since they started trading, with the exception being Binance’s MATIC, which so far this year went up
over 200%.
If investors bought IEOs at the
price they were offered by the exchanges and not at the price at which they
started trading, investors would be in the green in four out of eleven IEOs,
with returns ranging from 7.9% to 490%.
