Brief Analysis of Token Growth Post-IEO on Binance Launchpad
While the craze for IEO is still on the rise with Binance opening the door to others in this new method of funding projects through its Launchpad, many seem to have forgotten how ICOs evolved to becoming IEOs. Initial Coin Offerings, ICO which came to a dramatic end after creating a fundraising field for projects to raise questionable figures in their bid to build products. Many of which never made it to market which speaks volume of the level of lack in transparency and accountability in ICOs another trend is building up.
The sheer volume of fraud and scam which were discovered in the ICO days and the fall in market value of top leading cryptocurrencies which later trickled down the market size list of cryptocurrencies were more than enough to end this era of inexhaustible craziness. Although the amount of profit recorded by traders and investors during the ICO days were mouthwatering. Several others lost fortunes to scams and negative price actions which were caused by news of ban, arrest of project’s team members, sanctions etc.
Even before the end of the ICO days (others are still very optimistic and believe that the ICO days are not yet over), STO a name given to the fundraising of tokens which meets the security standard of traditional assets and can be classified as securities according to securities laws was already prepping to become mainstay. Notwithstanding the media’s focus and attention on STOs, we are yet to see a clear direction for Security Token Offerings. Never mind the World STO Summit of 2019 in Dubai.
Despite the decline in the level of fundraising in cryptospace, projects will still needed to be funded if we are to push the technology forward. This is where Initial Exchange Offering IEO came about. IEOs are the new ICOs of 2019. IEOs works by allowing users to send their funds to a wallet prepared by the exchange (unlike in ICO where funds are set to the Project’s wallet) after which they are allowed to invest the amount they desire to.
While we have lots of projects lined up for IEOs in various exchanges, let us examine some of the already conducted ones in their current market position. We are beaming our searchlights on the most sought IEO platform – Binance Launchpad. How are they fairing by the numbers post IEO?
From the success of the first IEO conducted in 2019 by Binance where the Tron based Bittorrent with a total supply of 990 billion BTT tokens raised $7.2 million dollars in 20 minutes, it is imperative we check how it has been doing for about 3 months post IEO. This doesn’t surprise most actors in the space who have seen projects raise far more in less time during the ICO days. However, it just shows the desire of investors to continue funding projects after the ICO era ended. Contributory Investors are still able to command financial power just as it was two years prior. Since January the sale was conducted, what is the value of the Bittorent BTT token?
With a current market capitalization of just over $56million and a circulating supply of 89.1billion BTT token, the price of one BTT currently stands at $0.0006 against its IEO price of $0.00012. Current price however, it’s good position post IEO, it has dropped down considerably after hitting all time high $0.00125 immediately it was listed garnering over 500% increase.
According to Coinmarketcap data, IEO participants still holding however the ups and downs are still enjoying 22.07% of the IEO value.
The team of Fetch AI did their IEO on the Binance Launchpad after the Bittorent IEO in January. The team was able to raise $6million dollars in just 22 minutes. FET has a total supply of 1.15billion of which 81 million FET are circulating. This has given it a market capitalization of $10.8million of which it has experienced a 67.24% decline from its IEO price. It attained all time high of $0.4307 as against an all time low of $0.129. Current value of one FET Token is around $0.13
Celer is also another project which did its IEO on the Binance Launchpad. The successes of the two previous projects Bittorent and FetchAI on the Launchpad brought about the rush into Celer. However, the rush, only about 10% of investors were able to acquire the CELER token. The CELER team were able to raise $4million from the sale and immediately the token became tradable on the Binance exchange, there was an immediate surge in the price of the token running upward to 400% which pushed it to $0.025 as against its’ IEO price of $0.0067.
With a market capitalization of $24million and total supply of 10 billion tokens of which 2.3billion are currently circulating, the token is already running at $0.010208 as against its all time high of $0.030469. IEO participants who must have not liquidated their position must be suffering at a fate of 66.5% decline from its IEO price.
Though at current only Bittorent seems to be the only IEO that is in profit post IEO, this could also be attributed to the marketing skills of the Founder of Tron, Justin Sun, Binance Launchpad has set a precedent and other exchanges are pushing on to do their own IEO. Many IEOs has been done IEOs too as according to data by the ICO Analytics, Multivac which is in 37% negative in 14 days performance window. Then there is Top Network having a 22% decline, Veriblock in 17% red in same 14 days Performance window. DOS Network is in 29% Green in 7 days Window and 5% Green in 14 days window, but it has -26% in 30 days performance window. We will still see more projects coming out to do IEOs still despite the disappointing numbers.
Despite the low prices in the tokens prices, the funding rounds have continued to record successes. As many of those who have continued to remain pessimistic on this new fundraising method citing issues such as trust, accountability, transparency and government legislative concerns, the race to join the next IEO is still on and as the sentiments with many founders show, they are enthusiastically in favour of IEO. Who wouldn’t by the way?
You don’t grow by refusing to eat. You grow by doing what people do to grow. Is IEO here to stay? That is not for me to answer, let the market decide.
Digital Assets Exchange Luno Launches Cryptocurrency Literacy Tour For Varsities in Nigeria
Luno has kicked off its cryptocurrency adoption program for Nigerian universities dubbed “Cryptocurrency Literacy Tour for Universities” launching out with the University of Lagos as the first of a series of tour where it will go about canvassing for the favourable adoption of cryptocurrency through knowledge in 6 Nigerian universities.
Luno, an exchange based off of South Africa was launched in 2013. It has since continued its growth trajectory by adding new users across 40 countries spanning more than 4 continents. It presently boasts of up to 3 million registered users across its platform with Nigeria as one of its biggest market.
Speaking on this development, Owenize Odia, the Country Manager for Luno said:
We are committed to educating our customers given the nature of the market and the tendency for people to fall into the wrong hands while online
With its debut tour kicking off in Unilag and having 300 youths in attendance, Luno is clearly taking the charge to bringing about perceptual shift and a favorable disposition towards cryptocurrencies which it says has not been properly understood. Through its representative Odia, it argues that the current financial systems was built for a non-digital age, ignoring the needs of the modern individual. Citing on the decentralized nature of a peer to peer digital currency like the bitcoin, it is not dependent on any central government or authority as obtainable with fiat.
She continued by saying
We are contributing by investing heavily into our Luno Learning Portal, which helps the public, the media, and other stakeholders educate themselves about the facts, opportunities, and risks in the cryptocurrency market,
In her post on LinkedIn, Odia assured the participants and other stakeholders that Luno would continue to focus on awareness initiatives such as this in Nigeria and Africa at large, thereby providing a reliable platform where just about anyone can visit either buy or sell cryptocurrencies.
Cryptopia Capitulates, Appoints Grant Thornton as Liquidator.
New Zealand based Cryptocurrency Exchange which was hacked in January 2019 Cryptopia capitulates, appoints Grant Thornton as Liquidator in its move to start settling affected platform users.
This decision was reached according to the liquidator’s press release that the management after efforts were made in an attempt to return the exchange to profitability which proved unsuccessful and as such it became the interest of all stakeholders to liquidate the Company.
Liquidator David Ruscoe was quote saying,
We realize Cryptopia customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders,
According to the Liquidator, the process is expected to span into months due to the complexity of the situation.
However, they (Liquidators) are focused on securing the assets of all stakeholders for their benefits and as such during this period, exchange activities will be suspended.
They further went on to say they are working with relevant authorities and independent experts as it concerns the exchange’s legal obligations.
In spite of this, as the news reached CryptoTwitter, the news of the liquidation has met a combination of pity, sadness and vexation of users of the Exchange with one saying and comparing Cryptopia to Binance
Grant Thornton, cryptopia team, I thought you would be smart and use profits from the coming months to buy back and refund costumers, I’m still waiting also for my Ormeus swap tokens. In scary territory you guys are moving. Look how @cz_binance is handling theirs.
— Justus Radegast (@JustusRadegast) May 15, 2019
Another user felt he has been cheated and commented thus
So they give a partly possibility to withdraw funds, almost reopen exchange to show police that they are ok and them just start liquidation. I am far from NZ, but I will fight for my funds
— DOH (@Donarito) May 15, 2019
Before its hack, Cryptopia was home to a large number of listed tokens and coins which attracted many Cryptocurrency Traders.
Despite the clamour for ultra-high security in exchanges and the call for users to hold their digital assets themselves on their private key held wallets, users still hold their assets on exchanges which are a prime target for hackers.
Recently on the 7th of May, Binance was hacked and it suffered a substantial loss of about 7000 BTC worth about $40m as at that date. Though it was a dent on the whole industry, the exchange reported it will indemnify all loss via its SAFU Fund.
The comparison of Cryptopia to Binance speaks volume of the nature of the industry. It’s better to exchange assets on an exchange that has insurance than those which doesn’t.
It’s also better to be outrightly transparent as Cryptopia was in liquidating the firm and settling stakeholders.
However, the question that must be answered is, will the small guy in a remote village of a third world country with assets on the exchange valued at about $50 or less receive indemnification? If yes, to what extent?
To answer this, let’s wait months to see or worse, years as is the case with Mt. Gox.
Binance Gets Hacked of 7000 BTC
Looks like CZ Would Have to Take Solace via the Liverpool Invite Afterall
Binance has been hacked after several unsuccessful attempts by hackers for a period of one year now as issued in its press release. With this hack, perpetrators successfully carted away with 7000 BTC in a single transaction. The damage could be more in the coming days CZ opines, as the team is taking time to investigate how deep this damage could be.
Binance announced itself to the world and without any doubt becoming the exchange trading platform of choice for most traders in the space. And swiftly, displacing veterans in the space such as Bittrex, Poloniex etc, for top positions, little doubt was left in the minds of many as to the height Binance could attain within the space as the cryptocurrency adoption continues to gain traction globally.
While Binance was making a good name for itself with the mantra “Exchange the world”, hackers were also making plans to ink their activities in the books of history as one of the successful clandestine groups who have successfully carried out a heist on the most popular exchange. February 2018, saw hackers attempt to breach the exchange security systems which was botched as they unsuccessfully got hacked themselves. It was in the news how the hackers themselves got hacked. After successfully targeting and breaching several user accounts via API (Application Programming Interface), the hackers pumped a VIA/BTC pair by over 10,000% and then immediately sought to cash out by withdrawal. This attempt was botched as the risk management mechanism built in triggered an alarm that automatically froze withdrawal leaving the hackers funds trapped in the exchange.
With controversial entities like McAfee tweeting that Binance exchange has been hacked, Binance quickly attacked him on Twitter that he’s trying to create FUD (Fear, Uncertainty and Doubts).
— Binance (@binance) February 8, 2018
Responding after some months, McAfee apologized to CZ and the entire Binance Team that he obviously was wrong and CZ offering a cup of coffee when they meet someday, could there be no love lost between the duo?
One thing was clear, CZ shared with his fans how this event obviously was a blessing in disguise and had made his fanbase grow very quickly. This marked a new era for both the Binance Team and their maverick CEO. CZ was always in the news whether for bagging new partnerships, fostering industry growth or even for recent CZ vs BSV Craig Wright Binance delisting.
From yesterday’s hack, and as described by Binance in their press release, it sure looks like the hackers decided to stage a “hackathon” on Binance. The recent hack operation was well coordinated. Took time and patience to execute. Even Binance agreed the modus operandi of these hackers followed the “once beaten, twice shy” route. They were not going to be hasty allowing their funds get trapped again. Alas! They got through with the similar pattern in the past but this time more intelligently.
Apparently CZ had tweeted that #SAFU (Secured Asset Funds for Users) funds will be used to ensure everything is kept under control while the team investigate and try to do implement damage control. Industry Leader and TRON CEO, Justin Sun has offered open support for Binance offering to transferring 7000 BTC to the Binance wallet and buying BNB and USDT to help stabilize the situation.
— Justin Sun (@justinsuntron) May 8, 2019
One particularly interesting part of the AMA session held few hours after the unfortunate hack incident is that CZ and his teams are putting all options on the table in ensuring this issue is salvaged. One of such is a reorganization of the bitcoin blockchain network. This is already sparking heavy debate across social media. This option even though earlier considered has been dropped as outlined in his tweet.
Received an invitation from Liverpool, very cool! pic.twitter.com/znBzg7b9Mn
— CZ Binance (@cz_binance) April 27, 2019
Let’s not be quick to forget at that nicely designed parcel CZ unveiled on Twitter sent to him by Liverpool FC, looks like this is actually a great time for CZ to honour that Liverpool invite he brandished via his Twitter account considering how exciting the club is right now after the 4 – 0 thumping of Barcelona at Anfield last night in the UEFA Champions League Semi Finals clash.
Bitcoin Trading at $6000, Ether at $173 at Bitfinex.
An Opportunity for Arbitrage Hunters?
Bitcoin trading at $6000 on Bitfinex presents arbitrage opportunities for traders at a market volume of $38.9 million in Bitfinex. This is $300 over the reported price in Coinmarketcap as at Press time presenting arbitrage opportunities to traders.
Ether the second top cryptocurrency by market capitalization is trading at $173 as against the reported aggregate in CMC of $164. This is an interesting opportunity for arbitrage seekers. Sure appearing like a great opportunity considering some of the major top cryptocurrencies are experiencing some significant value increase in the exchange. This is evidenced with the variance as seen with other exchanges or the CMC reported aggregated data.
Bitfinex which was founded in 2012 and has its headquarters in Hong Kong is currently listed as the 44th top cryptocurrency exchange. This is according to Coinmarketcap data as at press time. It was one of the top and biggest exchanges, prior to the launch of some of the exchanges ahead of it. However, it has been beset by a wide variety of allegations many of which it has up until now not been able to provide acceptable and substantial evidence to refute.
Arbitrage is a unique opportunity for traders to enjoy unique profits by trading the price differences between two different exchanges. According to Coinmarketcap and Bitfinex price data on Bitcoin and Ethereum, traders can be able to enjoy up to $300 and $10 profits respectively with Bitcoin trading at $6000 on Bitfinex presenting arbitrage opportunities.
Even more, Bitfinex has recently announced the launch of their IEO in their attempt to raise $1 billion to continue financing its operation. This is expected to happen in the midst of its varied scandalous allegations such as wash trading, Tether’s full value not hedged against the Dollar, inability to provide clarity of Tether’s operative transparency, Bitcoin manipulation.
Bitfinex price data was removed from the data feed of Coinmarketcap yesterday with the sign of an asterisk * which the website says means
“Some prices are manually excluded from the average, denoted by an asterisk (*) on the markets tab. This action suggests price is not indicative of a “free market price”
Hence, its removal by CMC. This is coming after Coinmarketcap set new rules towards ensuring exchange transparency
Arbitrage provides a great opportunity for traders to make significant gains and profits. And as such, users are most likely to troop into the exchange. Be that as it may, many may not be considering the looming scandals and the rationality of the $1 billion funds to be raise via IEO.
Consequently, will anyone because of profit attempt getting into Bitfinex to enjoy Bitcoin trading at $6000 on Bitfinex presenting arbitrage opportunities? Let’s see how the arbitrage hunters react to this.
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