The success rate of IEO projects is also an important indicator for evaluating the performance of Binance Launchpad. It is worth noting that WINk (WIN) experienced an increase even during the bear market cycle. However, in a bearish market, the performance of IEO projects is uncertain.ĭuring the bear market cycle, the highest increase in IEO projects was 41485% for WINk (WIN), while the lowest increase was -19% for AC Milan Fan Token (ACM). In a bullish market, most IEO projects will experience an increase in price. The performance of IEO projects is closely related to the trend of the overall cryptocurrency market. The impact of the cryptocurrency market on IEO performance Therefore, it can be concluded that the performance on the first day of an IEO does not solely determine the overall profitability. For example, TKO has the smallest profit margin, only 0.15%, while GMT has the highest profit margin of 3051%. The UTC+0 time point (the first-day closing price used in this article) is a widely accepted benchmark for a new day or a new candlestick in the market, providing sufficient liquidity and trading volume for users.Īfter buying into the 17 IEO projects at the first UTC+0 time point, there is an opportunity for profit in subsequent market trends, but the degree of profit varies significantly. Therefore, the highest price point generated within the first hour after listing is excluded from the calculations. IEO projects often experience significant volatility and price distortion shortly after listing. Profit can be made by buying at the closing price on the first day and selling the next day, but the market style is changing Nobel laureate in economics Richard Thaler summarized this behavior and coined the term "mental accounting" as early as 1980. The preference for lower-priced tokens is not unique to the cryptocurrency industry and can be observed in other investment markets as well. In fact, the higher gains for tokens with lower prices may be attributed to the collective behavior of retail investors. Projects with lower initial listing prices may have higher potential gains. Projects with lower initial listing prices may have higher potential gainsĪfter sorting the initial listing prices of the 17 projects, BlockBeats discovered a strong negative correlation between the initial listing price and the first-day increase as well as the historical maximum increase. Among them, BETA and GMT achieved the highest first-day and historical maximum increases with gains of 5283% and 41686%, respectively. The first-day increase is calculated based on the closing price at UTC+0, and the maximum increase does not include the highest price generated within the first hour of listing due to extreme price fluctuations.Īccording to statistics, the average first-day increase for nearly 17 Binance Launchpad IEOs is 1458%, with an average maximum increase of 5240%. To better analyze the project returns, all projects are evaluated using USDT trading pairs as a standard (the overall data will be slightly higher than BNB trading pairs). Since 2021, Binance Launchpad has conducted a total of 17 IEOs. Binance CEO CZ even tweeted, "When Launchpad?" expressing the demand for Launchpad projects.īlockBeats aims to explore the value that Binance Launchpad can bring to the industry and users during this bear market cycle, as well as the patterns that have been overlooked.ġ7 IEOs with an average increase of 1458% Unlike bull markets that offer various profitable opportunities, IEOs gained popularity during bear markets due to their ability to provide more stable and predictable profits. However, few people take the time to analyze past market trends, especially in relation to Initial Exchange Offerings (IEOs) that were popular during bear markets. Similar to previous bear markets, investment hotspots in the cryptocurrency market change rapidly, with different sectors surging at different times. Undoubtedly, the cryptocurrency market is still in a bearish phase. According to CoinMarketCap data, the total market capitalization of the cryptocurrency market has risen from a low point of $780.9 billion to the current $11.631 trillion. In 2023, cryptocurrency assets have been among the best-performing investment options. Investors have had the option to sell off their holdings and exit the market or explore other investment opportunities. It has been over a year since the cryptocurrency market reached its peak and subsequently experienced a decline.
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