IEO ROI Over Time

Initial Exchange Offering (IEO) in 2019 was able to give a second chance to the investors of the concept of ICO, which missed the boom two years before. However, recent evidence suggests that the IEO century was just as short as the ICO, The Block analyst Larry Cermak notes.

Cermak analyzed IEO on selected exchanges, namely Binance, Huobi, KuCoin, OKEx and Bittrex. As it turned out, only Binance today has a positive return on investment (ROI) in IEO: 77% relative to the dollar and 38% relative to Bitcoin. The rest of the exchanges are in a deep in the negatives, and the least successful of all was Bittrex.

Credit: The Block

This is how profitability indicators for individual IEOs look at the exchanges in question:

Credit: The Block

The analyst noted a negative correlation between the return on investment in IEO and the period since the campaign. After 200 days, the indicator tends to approach 0%.

Credit: The Block

The situation with IEO began to deteriorate in the second half of last year and only worsened over time. To date, only 23% of all IEOs have a positive margin compared to 43% in the fourth quarter and 64% in the third.

“IEOs are dead,” concludes Chermak.

Earlier, analysts of the BitMEX crypto-derivative exchange came to similar conclusions.

“While exchanges, traders and campaigners could make good money on IEO, we are much more skeptical about the prospects for long-term investors,” they wrote.

Author: Marko Vidrih

Featured image credit: Pixabay