Crypto Analysis Of The Best-Performing IEOs Out Of Binance Launchpad

Binance is actively leading the charge to facilitate the mass-market adoption of cryptocurrencies around the world and one of the ways it is achieving this goal is through its Binance Launchpad platform. Binance Launchpad is branded as a “token launch platform for transformative projects” and it is designed to provide startups with the tools, introductions, and skills needed to raise funds through IEOs that is usually open to more than 10 million Binance users and potential investors.

IEOs are expected to restore responsibility into how crypto projects raise funds due to the quality of due diligence the exchange is expected to conduct before it hosts an IEO. This year alone, Binance has completed four IEOs for BitTorent Token, Fetch.AI, Celer Network, and Matic Network – about $22 million was raised in between the four projects. The launchpad is currently conducting an IEO for Harmony and it has several more projects in its pipeline for the rest of the year. 

This piece compares the performance of four Binance Launchpad tokens over the last several months with a view to determining the common denominating factors could potentially be responsible for the widespread adoption of IEOs going forward.

BitTorent Token (BTT)
BitTorrent Token IEO was launched on November 1, 2018 and it ended on January 28, 2019. The BTT token raised $7.2M in two simultaneous sessions – the sessions had investors buying BTT tokens with BNB, while the second stream had investors making their purchases with TRX. The IEO was sold out in about 15 minutes.

From an IEO price of $0.00012, BTT soared to an all-time high of $0.001861 to deliver a colossal 1,450% gain within a month of its IEO. The token is currently trading around $0.001485, a 24-Hour volume    of about $140,618,148 and its market cap is around $314,845,373.

 

In the last month, BTT has started discarding the bearish weights and it appears to be building momentum for a breakout. The $0.00138 point has remained a resistance point to the $0.0015 barrier. A breakout above that resistance could send the token back on its way to $0.0018 and beyond.

Matic Network (MATIC)
Matic Network (MATIC)’s IEO went live on April24, 2019 and it ended on that same day. Matic’s IEO was conducted in the form of a lottery of ensure a more equitable distribution and to avoid the controversies that had trailed previous IEOs. Matic had a successful IEO in which it raised $5M by selling 19% of its total token supply.

Before the IEO, Matic had conducted two private sales comprising of a seed round in which it raised $165K from selling 2.09% of its tokens and an Early Supporters Sale in which it raised $450K from selling 1.71% of its tokens. Coinbase Ventures is one of the leading investors in the private sales the community is optimistic that Matic might be the first Binance Launchpad alumni to be listed on Coinbase.

MATIC started trading at $0.00263 and then its price skyrocketed to an all-time high of $0.045017 to deliver an incredible 1,600% gain within three weeks of its IEO. Matic is currently trading around $0.022373 with a 24-Hour volume off about $51,391,598 while its market cap hovers around $48,608,109.

 

There is a steady increase in the 24-hour trading volume of Matic, which might be linked to the fact that Matic launched its Alpha-mainnet called Tapas over the weekend. Matic Chains are Ethereum Virtual Machine (EVM) compatible and extremely developer friendly and the launch on the alpha-mainnet provides an opportunity for developers to deploy smart contracts on Ethereum using tools such as Truffle and Remix.

Interestingly, Matic didn’t just launch the mainnet just to cross off another item of its to-do list. The launch of the mainnet is accompanied with the readiness of development partners who will be launching some products on the mainnet in the coming days.

Some of the upcoming products include BetProtocol, a Layer 3 with potential for massive disruptions in the betting industry. It would also be interesting to see the debut of CryptoControl, a crypto news aggregator and trading platform that wants to leverage Matic for deploying its trading terminals and the disbursement of its loyalty point tokens.

Fetch.AI 
Fetch.AI (FET) ended its IEO on February 5, 2019. FET token raised $6M with the sale of 69,204,152 FET tokens (6% of the total supply). About 2,758 investors were able to purchase tokens and the IEO was sold out in about 10 seconds to make FET IEO the fastest IEO out of Binance Launchpad.

FET token started trading around $0.0867 before it climbed up to an all-time high of $0.430755 to mark a decent 396% gain two months after its IEO. The token is currently trading around $0.16149; it has a 24-Hour trading volume of about $23,466,968 and its market cap is valued at a modest $13,168,569.

 

FET has not had a particularly impressive performance, it practically started trading with a decline and it didn’t hit its all-time high until about 2 months after its IEO. Nonetheless, the token has managed to get over the controversies that trailed its IEO and it now appears to be gearing up for a breakout into new highs.

Celer Network (CELR)
Celer Network (CELR) launched its IEO on April 1, 2018 and it ended on March 19, 2019. The company raised $5M from IEO with sale of 597,014,925 CELR. Founded by a team of four PhDs from MIT, Princeton, UC Berkeley and UIUC, Celer Network is created to enable the building, operation, and use of “highly scalable decentralized applications through innovations in off-chain scaling technique.”

 

Since opening for trading, CELR has shown a more consistent performance than other coins that came out of Binance Launchpad. It’s current trading price around $0.018300 is only 39% off from its IEO price of $0.030469. The recent $0.025193 high and the subsequent rally is also putting CELR in position to soar once the bullish rally kicks off in the cryptocurrency market.

MATIC is in an early lead
All the four IEOs profiled in this piece have declined from their all-time highs. For instance, BitTorrent is down 20% from its all-time high, MATIC is down 47.3% from its all-time high, Celer Network has declined by 33.2% from its all-time high, and the trading price of Fetch.AI has dropped by about 53%.

Nonetheless, MATIC still boasts an incredible 820% ROI to outperform the 200% and 130% ROI from Celer Networks and Fetch.AI respectively. In addition, the project is progressing at remarkable speed especially with the overnight launch of its Alpha-mainnet.

Many crypto investors are still seething from some unpleasant experiences that accompanied the 2017 ICO frenzy. IEOs are gradually becoming the most preferred method for crypto projects to raise funding. However, the performance of the first set of IEOs will be the determining factor on whether IEOs enjoy the same level of widespread acceptance than ICOs had.

 

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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