On May 13, 2019, BitMEX Research released a report on Initial Exchanges Offerings [IEO]s. The report also gave insight into the Initial Coin Offering [ICO] market, with the data showing a significant drop in the funds raised. The report also suggested that some projects opted to hold an IEO to raise money instead of an ICO as the market “dried up following a massive boom” in 2017 and the following year.
The report stated,
“The ICO market is down around 3,800% in Q1 2019 (YoY), based on the amount of capital raised. In this relatively challenging climate to raise funds, some projects have changed the “C” in ICO to an “E”, perhaps in an attempt to assist with raising capital.”
The report also suggested that the concept of IEO was going relatively well in the market as almost $40 million was raised in the past four months. It stated,
“However, we remain sceptical about the prospects for long term investors […]the [ICO] market has dried up following a massive boom in 2017 & 2018.”
To add on, the report stated that the investment return of the projects that raised ICOs in 2018 was poor, with several projects plunging by 80 percent compared to its ICO price, considering that these coins are traded on exchanges.
The report also gave a performance data on the top ten ICOs that raised the largest amount of funds in 2018. The first project was EOS; the project’s token is currently the fifth largest cryptocurrency in the market. The report showed that the project had raised $4,234 million funds and the return based on average ICO price was down by 4 percent.
While the second largest project, Telegram that raised $1,700 million, and the third largest project, Dfinity that raised $195 million, do not have a listed coin.
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Bitfinex announces removal of current high frequency/size fiat withdrawal fees
Bitfinex, one of the most controversial cryptocurrency exchanges, announced that it would be removing “current high frequency/size fiat withdrawal fees on Bitfinex”. The exchange stated that the move of providing “low-cost fiat withdrawals” was made solely for its “loyal users”. The exchange also stated that the new numbers will be updated tomorrow.
The platform stated in a blog post,
“Standard fiat withdrawal fees will once again apply to all verified Bitfinex users, totaling 0.1% of the amount withdrawn ($60.00 minimum). We are thankful for the support that many of our traders have shown us, and we are proud to once again be able to provide our loyal users with low-cost fiat withdrawals.”
ibankbitcoins, a Twitter user said,
“So one of LEO’s benefit of having better withdraw fees is now nullified, great work tho because 3% is too high.”
Keeping this aside, the exchange also made another announcement today regarding its venture into the Initial Exchange Offerings [IEO] side of the market. Notably, Ethfinex, Bitfinex’s sister exchange that focuses on ERC20 tokens, will also be taking its first step into this along with Bitfinex. The exchange had stated on Twitter,
“After much development to ensure a user-optimised experience, we are proud to unveil the latest product in our portfolio, Tokinex, our new Initial Exchange Offering platform.”
The new venture would be called Tokinex, which would be launched on 23rd May, with the customer verification process handled by BlockPass app. However, United States customers and other customers from its restricted jurisdictions list will not be allowed to participate in the sales taking place on this platform. The first token sale was reported to take place on the 13th of the coming month.
The blog post stated,
“What it means to be an exchange has evolved to become an entire ecosystem, not just limited to the remit of trading digital assets. We are proud to finally launch Tokinex and bring the opportunity for participation in quality token sales in a fair environment.”
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