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Topic: Bitmex Research Reveals That investors have lost about 98% Investment in IEOs. (Read 183 times)

legendary
Activity: 3668
Merit: 6382
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Why are people surprise, it is just like doing the same thing and expecting different results, expect some of the IEO on Binance that did well others are failure. To be sincere there are a number of reasons for this, lack of product, even most can't generate revenue. ICO did well for the space but we need it to be better structured

2019 was indeed a bad year for ICO/IEO, much worse than for altcoins. I don't understand how could the potential investors be so hugely uninformed. 2018 has already shown that ICO/IEO are way too risky and most are pure scam.
I understand that some do have a huge appetite for risk,  but I fear that here it was more than that. Some see coins / tokens investments like some sort of lottery - no information check, just put some money in and hope for the best. Too bad.


Still, although knowing all this, I am still surprised on how bad the numbers are!
hero member
Activity: 1876
Merit: 512
Why are people surprise, it is just like doing the same thing and expecting different results, expect some of the IEO on Binance that did well others are failure. To be sincere there are a number of reasons for this, lack of product, even most can't generate revenue. ICO did well for the space but we need it to be better structured
legendary
Activity: 3178
Merit: 1054

of all its just matic that seem profitable. i have joined that BTT IEO and i cab say its still one of the project that still made me good amount  but the rest are just nothing. nor sure why those exchanges are approving to get it on in doing IEO. 

IEO is no different from ICO and never better than ICO, they are both the same and one is a more classified shit which is IEO, it's more official and hence gather more investors, after that investors get rekt. This is part of why the whole Crypto space is not very interesting. Too many wolves developers.

i still like the ICO than this IEO. it only feels like we are not safe anymore, i can't even dump the first because there is always someone in the exchange whos primary objective is to watch the countdown when the market will be open.
copper member
Activity: 448
Merit: 3
IEO is no different from ICO and never better than ICO, they are both the same and one is a more classified shit which is IEO, it's more official and hence gather more investors, after that investors get rekt. This is part of why the whole Crypto space is not very interesting. Too many wolves developers.
member
Activity: 368
Merit: 25
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From this report we can conclude IEOs just offer confirmed listing on exchange and we still have to do proper research before investing in IEOs if we are investing with long term goal. Looking at the performance of IEOs when listing on exchange almost every IEOs are launching with higher price as compared to its offered price. In this situation it's better to sell tokens initially to take out gains and later buyback again if you believe in the project at lower price.
full member
Activity: 573
Merit: 102
I never knew it will be that bad maybe because I wasn't a perenial IEOs investors but Bitmex Research makes some damn revelations. You can take a look below

"In its latest report on the phenomenon published on Dec. 23, the analytics arm of exchange BitMEX, BitMEX Research, identified twelve major IEOs that launched this year. Of those, eleven are now almost worthless compared to the price at which they first traded on exchanges."
https://cointelegraph.com/news/bitmex-crypto-ieo-poor-performance-sees-investors-lose-up-to-98

Especially Binance IEOs initially promised good profits. For Binance IEOs things went generally well initially. But in other exchanges, the result was not the same. Especially the Ocean had been a great disappointment.

This reminds us that; we must always be very careful in this market.

I think its a general issue and not just related to Binance IEO coins/tokens. Where are those coins that had top top sales and popularity on OKEX, Gate, Bitrexx and Kucoin IEO launchpads. Even the token Ampleforth from one of the biggest exchange in Europe(Bitfinex) is one of the worst performing tokens.
hero member
Activity: 1638
Merit: 518
somehow I am not surprised about that news .
well , probably because i still following about IEO news .
and for sure , that right , even from high reputation exchange .
btw, u can see current graph about ROI/profit from IEO project here
full member
Activity: 434
Merit: 101
https://www.payaccept.net/
I do not trust exchanges and IEO because many are scans and gas no working product, it's still best one doesn't look at exchange but look at project before investing, imagine such list from investors..that's pathetic I must say.
member
Activity: 406
Merit: 14
It means people should still do research on IEO projects and not rely on exchanges doing it for them, i still don't know how accurate this is because many IEO projects from top exchanges are good projects, few lose value but it's basically because of market condition presently
member
Activity: 798
Merit: 14
I made this assertion during the onset of IEOs I was of the opinion that it would turn out just like ICOs or even worst. IEOs were a means of raising quick profits for both the project and the exchange as well. Binance IEOs made lots of money for Binance due to transactions charges on trades during the pump of IEO tokens. Binance token had an increase in prices as well during the NG this period.
hero member
Activity: 1344
Merit: 502
It is normal for projects to depreciate a little once they've listed and there's a period of time where the milestones are being worked on but provided you've chosen good quality IEOs and invest wisely and optionally trade to obtain better value out of your investments you shouldn't be in a losing position overall
legendary
Activity: 1424
Merit: 1008
We know about what was happened in icos at the end now time for ieo take that place to stolen investors fund as per my research about ico or ieo are 90% end with scam or worthless now and we can see only 10% genuine now, so before going to invest in any ieo we have to think and do some research about ieo they are genuine or not.
legendary
Activity: 3276
Merit: 1029
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Investing in a startup is very risky!

IEO's gave that opportunity through an exchange removing the possibility of a scam. But, most of these IEO's did not even achieve there targets and were straight away listed on an exchange. This caused them to tank after listing. This is one of the reasons why investors lost money.

Exchanges should have never allowed those listing. Reputation of these exchanges are now questionable?

The only guarantee that already taken by those investors is the instant listing on the exchange site and that's the only thing that has been used by investors to bet on the IEO. I don't see another factor that can make it becomes reasonable as it's a very high-risk decision because the new company is not even having track record.
The credibility of such a company still unknown.
Remember about the only reputable exchange sites are putting very strict rules but garbage exchange site just care about the money that they will get it from the fees.

hero member
Activity: 2156
Merit: 803
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Investing in a startup is very risky!

IEO's gave that opportunity through an exchange removing the possibility of a scam. But, most of these IEO's did not even achieve there targets and were straight away listed on an exchange. This caused them to tank after listing. This is one of the reasons why investors lost money.

Exchanges should have never allowed those listing. Reputation of these exchanges are now questionable?
sr. member
Activity: 1050
Merit: 256
That's why I stopped being an investor in tokensale, whether it's ico or ieo. Come to think of it, those developers can't guarantee profits for their investors. They can only provide initial bonuses for investors which when entering the exchange, the bonus is not useful either. And I think this is a foolish act.
Investment service providers of IEO should be aware of this situation. If ieo continues to disappoint, we can be sure the prestige of the exchange will also be affected.
legendary
Activity: 1624
Merit: 1130
Bitcoin FTW!
Not surprising to me at all considering we're nearly back to Bitcoin's price in May, which is referenced in the Bitmex article in question, and alts have been rising slower and dropping as fast if not faster than Bitcoin recently. Also shows the underscores the downside of the strategy of investment many people use of placing lots of money into various IEOs or ICOs and waiting for them to rise- even though a few of them might rise rapidly like MATIC, the vast majority of them do poorly and you won't necessarily be able to offset the losers with winners.
hero member
Activity: 2660
Merit: 551
So by now we can conclude based on that report, that IEO and ICO does have similarities. Everyone thought that the IEO will be the next best thing, however, it's pretty much the same, just another name. But in the end, you can still loss your money or could be pump and dump by bad actors from behind. So only those who have huge capital can take advantage again and create more money thru this IEO craze.
hero member
Activity: 1540
Merit: 507
This could be the reason why there's a sudden silence that came in for IEO lately. I haven't heard that much hype with it these days because of the introduction of it which made a lot of expectations and people turning to rush with investing to every IEO that will be done by an exchange.
it looks like all of the exchange sites are aware about the situation when the market is getting bearish trend and that will be affecting the position of the ico but as far as i know if some new IEOs on binance are still reaching the hardcap, the bad part those IEOs are getting a very bad return that already traded below the ico price as the first listing price.
that's very bad to see that but ico is not worth anymore.
People are still staying away from the market too right now.
hero member
Activity: 1470
Merit: 509
I do not think we need statistics for this, which is easily visible when we look around. Even the Binance IEOs, which everyone thinks are the most successful, return its deserved price as time goes by. At a time when the market is in poor condition, only HYIP increases. There are surely some projects that do not belong to this view, but the majority is the same. I can not give you a suggestion not to invest in IEOs, but try not to be victim in these movies.
sr. member
Activity: 641
Merit: 253
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Despite the scary fact from Bitmex as long as investors and developers don't get an alternative crowd funding option that can offer investment security and immediate exchange liquidity then IEO remains the only option forseable. I have seen some adverts on Initial Model Offering (IMO) which entails perioding investment of a particular project after passing the investors appraisal mark but the fact that this model also locks 90 percent of investors token which will be release through out 366 days also makes it less desirable for investors. So we are stuck with IEO till further notice

Not many people know about IMO, mate. So, after ICO, the crypto world knows about the IEO as it is appreciated by the giant exchanges like Binance, Huobi, Bittrex and so on. I don't think these big exchanges will let IEO ends because they can earn such huge money from their IEO launchpad! And of course, Bitmex was not honest enough to make this list. overall, I am with IEO and waiting for the next IEO on Binance Launchpad.
sr. member
Activity: 641
Merit: 253
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Sorry to say I do not agree with what Bitmex trying to say here. Why they put the Gifto's name and Bread? These coins are old, therefore all the coins listed here were very profitable for the IEO investors. Who is holding they face rekt or decline, the same thing goes to Ethereum or with every big coin. Because if you forget the ICO/IEO price and count the present investor then every investor is in loss nowadays. Bitmex did not have any IEO yet, that's why they made this list, otherwise, they wouldn't.
full member
Activity: 1176
Merit: 104
That is the fact cause of course, they are just being started. Remember, we are not in the bull market and if you got into Binance IEOs I don't believe that you will lost a lot since in the first week of trading you will get a lot unless that investor is too dumb to hold and believe into that project too much which is rare. But maybe, once they move along like other projects did, holding it would be worth it.
hero member
Activity: 966
Merit: 502
Despite the scary fact from Bitmex as long as investors and developers don't get an alternative crowd funding option that can offer investment security and immediate exchange liquidity then IEO remains the only option forseable. I have seen some adverts on Initial Model Offering (IMO) which entails perioding investment of a particular project after passing the investors appraisal mark but the fact that this model also locks 90 percent of investors token which will be release through out 366 days also makes it less desirable for investors. So we are stuck with IEO till further notice
sr. member
Activity: 2338
Merit: 273
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This is what I thought at first and then it came...
I am very skeptical about the IEOs at some point because I don't see any security on the investors and this news come, honestly I did not wished for it nor expected it but I thought of it when I see IEOs are operating. It just keeps getting harder for investors to get the return they want, or just a decent return from their investment.I'm afraid we're going to lose some of our investors with these kind of business especially the average investors. I conclude it is not a great time for investments like that, there is a high chance of failing.
Nothing is better than IEO for now so investors don't have another crypto crowdfunding option, but the target remains the same as the previous scheme where the final price is always below ROI, the basic difference is that IEO includes an exchange reputation to attract investors, the rest stay natural where the market has full power.
legendary
Activity: 3080
Merit: 1500
That had to happen! Because ICOs and IEOs were floated to the market with same intention - to take money from people's pocket to their pocket. Even the operating structure is different, but the modus operandi remained same for both! The result we all can see now! A palace built on thin air will eventually have to fall!

The better alternative to ICO and IEO model is STO. It is a regulated crowdfunding model and has a complex legal procedure to take care of. A group of scammer won't take such route and eventually fall off from the league! STO model actually ensures the integrity and authenticity of a company and needs approval from SEC. So an investor will have some sort of assurance in place!
full member
Activity: 573
Merit: 102
This could be the reason why there's a sudden silence that came in for IEO lately. I haven't heard that much hype with it these days because of the introduction of it which made a lot of expectations and people turning to rush with investing to every IEO that will be done by an exchange.

There's a possibility that IEO will be over their success is shortlived what happen to ICO is now happening to IEO, I wonder if STO will follow after this, there should also be a study about STO, and see if they are following the same path, it'\s really preferable to invest on the top coins in the market, than gamble to this crowdfunding.

STOs were introduced immediately after ICO and before the IEO. But it didn't attract much attention. Because in logic, it seemed that the market was not very convenient.

Yes STOs is the proper model but wouldn't really work because most cryptocurrency companies aren't established especially for the startups. Maybe Coinbase, Binance, Kraken, Bitmain would successfully hold an STO.

Also the fact that the market is not fully developed made it impossible for STOs to thrive, plus investors mostly want immediate returns with high margins.
full member
Activity: 573
Merit: 102
A reason they do not have a good performance, IEO only guarantees security in crowdfunding events, not means there is potential for the future, please note this. because what I know lately is that the IEO project has been filled with manipulation and allocation that doesn't make sense. from the OP source link provided, only the Matic project was able to provide more investor returns, and there was bad news, but the team succeeded in overcoming and refuting the incident. from this all the projects can be concluded with an active team and build a good strategy, will affect performance and there is more potential at a later time.

You are right. One thing we are sure IEO brought to the table was crowdfunding security which ICOs really didn't offer. On stability of investors funds or returns of higher profit margins, we will think of a solution for that Wink

sr. member
Activity: 1918
Merit: 370
This is what I thought at first and then it came...
I am very skeptical about the IEOs at some point because I don't see any security on the investors and this news come, honestly I did not wished for it nor expected it but I thought of it when I see IEOs are operating. It just keeps getting harder for investors to get the return they want, or just a decent return from their investment.I'm afraid we're going to lose some of our investors with these kind of business especially the average investors. I conclude it is not a great time for investments like that, there is a high chance of failing.
sr. member
Activity: 1568
Merit: 321
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This could be the reason why there's a sudden silence that came in for IEO lately. I haven't heard that much hype with it these days because of the introduction of it which made a lot of expectations and people turning to rush with investing to every IEO that will be done by an exchange.

There's a possibility that IEO will be over their success is shortlived what happen to ICO is now happening to IEO, I wonder if STO will follow after this, there should also be a study about STO, and see if they are following the same path, it'\s really preferable to invest on the top coins in the market, than gamble to this crowdfunding.

STOs were introduced immediately after ICO and before the IEO. But it didn't attract much attention. Because in logic, it seemed that the market was not very convenient.
hero member
Activity: 2926
Merit: 567
This could be the reason why there's a sudden silence that came in for IEO lately. I haven't heard that much hype with it these days because of the introduction of it which made a lot of expectations and people turning to rush with investing to every IEO that will be done by an exchange.

There's a possibility that IEO will be over their success is shortlived what happen to ICO is now happening to IEO, I wonder if STO will follow after this, there should also be a study about STO, and see if they are following the same path, it'\s really preferable to invest on the top coins in the market, than gamble to this crowdfunding.
sr. member
Activity: 1568
Merit: 321
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I never knew it will be that bad maybe because I wasn't a perenial IEOs investors but Bitmex Research makes some damn revelations. You can take a look below

"In its latest report on the phenomenon published on Dec. 23, the analytics arm of exchange BitMEX, BitMEX Research, identified twelve major IEOs that launched this year. Of those, eleven are now almost worthless compared to the price at which they first traded on exchanges."
https://cointelegraph.com/news/bitmex-crypto-ieo-poor-performance-sees-investors-lose-up-to-98

Especially Binance IEOs initially promised good profits. For Binance IEOs things went generally well initially. But in other exchanges, the result was not the same. Especially the Ocean had been a great disappointment.

This reminds us that; we must always be very careful in this market.
hero member
Activity: 1008
Merit: 501
This is really bad news for the crypto world that the IEO idea did not help enough for the crypto world and of course for the investors. Though investors who bought tokens from the IEO launchpad got huge profit from all of the top exchange's IEO! but who bought after listing on exchanges they lost by all these big percentages. But still, I will support IEO over the shitty ICO sale, at least everyone is not looser in the IEO sector. However, to prevent such losses, investors may stop investing for a while until the Bitcoin price goes up, I already stopped buying any new coins, to me buying bitcoin, Ethereum or even Bitcoin cash is better than investing in new projects.
hero member
Activity: 3108
Merit: 577
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This could be the reason why there's a sudden silence that came in for IEO lately. I haven't heard that much hype with it these days because of the introduction of it which made a lot of expectations and people turning to rush with investing to every IEO that will be done by an exchange.
legendary
Activity: 2310
Merit: 1035
Not your Keys, Not your Bitcoins
I have never participated in IEOs because most of them are trying to raise huge amounts while the token value and the neccessities of development are dramatically lower. Take an example - Stratis managed to develop smart contracts, sidechains, STO and ICO platform + a blockchain made entirely from Bitcoin code written in C#(or C++ I don't remember exactly) with a raised amount of around $500k. Other projects raise millions and don't achieve a fraction of what these guys did. So my personal conclusion is it isn't worth investing in IEOs.
sr. member
Activity: 784
Merit: 251
A reason they do not have a good performance, IEO only guarantees security in crowdfunding events, not means there is potential for the future, please note this. because what I know lately is that the IEO project has been filled with manipulation and allocation that doesn't make sense. from the OP source link provided, only the Matic project was able to provide more investor returns, and there was bad news, but the team succeeded in overcoming and refuting the incident. from this all the projects can be concluded with an active team and build a good strategy, will affect performance and there is more potential at a later time.
full member
Activity: 573
Merit: 102
I never knew it will be that bad maybe because I wasn't a perenial IEOs investors but Bitmex Research makes some damn revelations. You can take a look below

"In its latest report on the phenomenon published on Dec. 23, the analytics arm of exchange BitMEX, BitMEX Research, identified twelve major IEOs that launched this year. Of those, eleven are now almost worthless compared to the price at which they first traded on exchanges."
https://cointelegraph.com/news/bitmex-crypto-ieo-poor-performance-sees-investors-lose-up-to-98
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