Why Initial Exchange Offering Crypto Tokens Are Reaching All-Time Lows

During the start of last year, following the inception of the Binance Launchpad, IEO tokens, or initial exchange offering crypto tokens, became all the rage.
They exploded onto the crypto scene with much hype, and rocketing values, and even helped each platform’s native exchange token thrive throughout the year. But after such an explosive debut, why are these altcoins reaching all-time lows?
The Rise and Fall of the IEO Token
In early 2019, the crypto market began to thaw out from its extended crypto winter, and many of the top assets in the industry began rallying.
The rally was driven in part by Litecoin’s halving, oversold crypto assets rebounding after an extreme selloff, the Bitcoin safe haven narrative, and an explosion in interest surrounding initial exchange offerings and the platforms that provide them.
Related Reading | Matic Dump Leads To Questions Over IEO Crypto Legitimacy 
But eventually, Litecoin’s pre-halving rally was erased, Bitcoin topped out and reentered a downtrend, and since then, IEO tokens have been tracking their way towards zero.
One of the most popular IEO tokens during the initial hype has now reached an all-time low.

Ripple (XRP) Lacks Momentum But Here’s Why Bulls Are Comfortable
Tuesday March 31, 2020

Ripple is up around 5% and it broke the $0.1700 resistance area against the US Dollar. XRP price is currently consolidating gains below the key $0.1750 resistance. Ripple price is showing a few positive...

The post Ripple (XRP) Lacks Momentum But Here’s Why Bulls Are Comfortable appeared first on 12bitplay - Bitcoin Play.

Binance $ONE / BTC
All-Time Low 0.00000047 broken
Trade here: https://t.co/NUEXNiWIVs pic.twitter.com/EYLqK5idtj
— BagsyBot (@BagsyBot) February 26, 2020

Crypto Titanic: Altcoin Investors Must Prepare to Sink With The Ship
Thursday April 02, 2020

With a black swan event is upon us – an unpredictable event that forever alters the way people think and behave – are crypto and altcoin holders prepared to potentially go down with the...

The post Crypto Titanic: Altcoin Investors Must Prepare to Sink With The Ship appeared first on 12bitplay - Bitcoin Play.

But Why Are These Crypto Tokens Falling Even During Altcoin Season?
But why? Why are these once-hyped tokens still grossly underperforming despite the recent cryptocurrency market revival, that has caused many top altcoins to explode by over 100%, doubling in value in less than two months?
During the crypto hype bubble in 2017, much of the fever was driven not just by Bitcoin, but by Ethereum and the inital coin offering boom.
New investors flocked to the emerging asset class hoping to make an early investment in a crypto project, hoping to strike it rich by discovering the next Bitcoin before it became widely adopted.
Eventually, the SEC and other regulatory entities stepped in, causing the ICO boom to go bust, and the crypto bubble to burst.
Related Reading | Former SEC Chief Calls IEOs “Unregulated Crypto-Casino Fundraising Mutations” 
But demand for this sort of early investment remained high, and in 2019 Binance and other exchanges came up with the idea to launch tokens via their own platforms, with additional support form the exchange theoretically offering better investor protections than the traditional ICO.
Initial exchange offerings became a hot commodity, with many of the launched platforms becoming among the most hyped altcoins of the bunch.
But in no time at all, negativity began to surround this new breed of crypto. Matic, one of the most popular IEO tokens, was subject to a massive pump and dump that left investors badly burned.
Now, other IEO tokens like Harmony One have reached all-time low prices, as investors begin to wonder if they promise they initially offered early investors will hold true in the future. And with regulatory uncertainty hanging over this unique category of altcoins, the negative sentiment surrounding them may not change for some time.
Featured image from Shutterstock

Analysis: Bitcoin Could be Headed to $1,000 Amid Unexpected Liquidity Crisis
Friday April 03, 2020

Since Black Thursday, which saw Bitcoin bottom at $4.6k on the day, the number one cryptocurrency has since been range-bound with strong resistance at the $6.8k level. Although it’s been able to post definite...

The post Analysis: Bitcoin Could be Headed to $1,000 Amid Unexpected Liquidity Crisis appeared first on 12bitplay - Bitcoin Play.

You may also like...