Cryptocurrency analyst Larry Cermak noted that the return on primary exchange offerings (IEO) is close to zero. He analyzed the most popular platforms and came to the conclusion that the era of IEOs has passed.

The Block analyst Larry Cermak ascertained the death of initial stock offerings (IEO). According to him, their profitability is approaching zero in less than a year.

“IEOs are dead. There appears to be a clear relationship between the return and the number of days since the IEO. The average return of IEOs approaches 0% in 200 days. In other words, nearly no one wants to hold IEOs long term,” he tweeted.

In the first two months (60 days), IEOs' profitability fell from 260% to 100% on average, and, in 100 days, it dropped to 50%, slowly rolling to zero after that.

Cermak analyzed the profitability of IEO projects that were offered on five platforms (Binance, Huobi, KuCoin, OKEx, Bittrex).

“Binance is now the only exchange with a positive average return. All other exchanges are deep in the negatives. Bittrex being by far the worst,” Cermak added, attaching a summary table of ROI on five platforms.


In the III quarter of 2019, 64% of IEO projects showed a positive return; in the IV quarter, their number decreased to 43%. Currently only 23% of the projects are in the positive zone.