Trend of Tokenization Series: A Glimpse on ICOs, IEOs, and STOs Performance in 2019

Of late, the segment of tokenization lures the shrewd investors with the exponential returns (yields flashes in 3 digits in percentage terms).

While the regulator raises a cautionary statement that the token categories are not mutually exclusive, suppose that a token issued as a utility token can also transform into an exchange token over the timespan. Quite a few tech-savvies perceive this property of tokenization mechanism as an apprehensive thing to consider. We run you through some underlying prices of exchange tokens that have been eye-catchy.

An exchange token price, ‘Bibox Token (BIX)’, has rallied considerably in March upon progressive market conditions, BIX rallies prolonged investors’ bullish sentiments. Amid the gaining traction of tokenization, Huobi Token (HT), the exchange token has also spiked recently about a mammoth 113% in the recent past. The token’s price has reached $2.37 to hit with a market cap of $118.485 million.

The token offerings are spread across the ICO (69%), IEO (21%) and STO (10%) sectors. The U.S. has emerged as the global leader with 66 token offerings. Second is Singapore, growing in popularity as a favorable jurisdiction for token sales with 52. China with 30 token offerings, raised the most capital through token sales in 2019, despite the country’s anti-crypto stance. 

A defrosting crypto-avenue: The Half Yearly Report: Deciphering Token Offerings: IEOs, STOs, and ICOs, compiled by token sale analysis platform InWara, identifies new trends in the token sale market such as the emergence of a new blockchain-based investment vehicle, the Initial Exchange Offering (IEO). It says that the entry of major players from established industries such as the Facebook Libra Project and JP Morgan has helped revitalize interest in the sector. 

Token offerings during 2019: During H1’2019, the blockchain start-ups raised $2.26 billion through blockchain-based venture funding. The first quarter of 2019 saw a total of $560 million raised. However, Q2 saw significant growth with a total of $1.7 billion raised. However token-based funding is down by 46 percent year-on-year due to the collapse of the ICO market.

A total of 583 blockchain-based token offerings were launched during the first half of 2019. While ICOs have been steadily declining in popularity, they are still the most popular type of token offering. 69% of the 583 token sales in the first half of the year were ICOs with a total of 403.

However, the total number of ICOs has declined by 74% when compared to H1/2018. Similarly, the total amount raised by ICOs has plummeted. ICOs raised $1.32 billion in H1/2019, which constitutes a sharp decline of 91% from 2018.

In contrast, the emergence of IEO projects in the first half of 2019 represents a 6000% increase to a total of 123 projects. This number constituted 21% of the total number of token sales. In the last six months, IEO projects raised $1.63 billion. As ICOs continue to fall out of favor, the number of IEOs is expected to grow in the second half of this year.

However, one single project was responsible for a large portion of the total amount raised by IEOs. The Bitfinex LEO token IEO raised $1 billion in May 2019. The IEO was floated through Bitfinex’s IEO platform Tokinex.

As a result, Bitfinex claimed the title of the leading IEO platform in H1’2019 due to the success of the LEO token raise. Another leading IEO platform is Gate.io through which projects raised $320 million.

An exchange token price, ‘Bibox Token (BIX)’, has rallied considerably in March upon progressive market conditions, BIX rallies prolonged investors’ bullish sentiments. Amid the gaining traction of tokenization, Huobi Token (HT), the exchange token has also spiked recently about a mammoth 113% in the recent past. The token’s price has reached $2.37 to hit with a market cap of $118.485 million.

In last Month’s trading series, BIX has bounced from the lows of $0.159 to over $0.48 levels, a spike of approximately 217%. This bullish streak drives BIX to a market cap of mammoth $53.3 million, which is the 10th largest among the AltDex Exchange Token Index. Bibox, as an eminent digital assets trading platform, is a mining intensive which is targeted for high-end decentralized projects. Courtesy: BNC