Binance has just completed its most recent Initial Exchange Offering (IEO), Kava. The event provided a return of around 180%, which is a shadow of what IEOs used to generate in the not-so-distant past. It highlights the fact that if Binance is to keep these exchange offerings live, it will need to continue selecting quality projects in order to retain the interest of investors and make sure they won’t incur losses.
The KAVA IEO on Binance Launchpad: A 180% ROI
Binance Launchpad just completed its most recent IEO, Kava. The project had a hard cap of $3 million and sold KAVA tokens for $0.46 each. 6.52% of the total token supply was distributed during the sale.
Upon opening the trading session, the token surged in price. Against USDT, it was trading at around $1.20, which is nearly an all-time high. This is an increase of around 180%.
As can be seen on the chart, the price pulled back almost immediately, and KAVA is currently trading at around $0.77. Despite the drop, the price is still up around 70%.
Each IEO on Binance has provided returns lower than the previous one, with a few exceptions. This is definitely a reason to worry because a lot of the people who are buying into these projects are doing so for the expected quick returns.
A Quick Recap and a Look to the Future
Binance Launchpad started off as something interesting, and it yielded serious returns for those who participated, especially at the beginning.
Projects like TRON’s BitTorrent, Fetch.AI, Celer, Matic, and even Elrond all brought significant returns to investors. However, it didn’t take long for things to cool off.
After numerous changes in the minimum token holding requirements, as well as the allocations per winning ticket and their overall numbers, Perlin’s IEO only saw 5% of its participants win. Naturally, people were disappointed.
Prior to Kava, the platform’s previous IEO was Band Protocol. The latter gave investors a return of around 380% but is already trading in the red and below its IEO price.
Clearly, Binance Launchpad’s IEOs’ returns are getting lower. Binance must make sure that the projects that it picks up are interesting and credible in order to maintain interest and prevent them from dying out.
However, it’s worth remembering that the entire market is at a crossroads at the moment, and a lot of cryptocurrencies are incurring heavy losses, which surely has an impact on IEOs.