IEOs are starting to make a comeback thanks to @binance Launchpad.

And they’re earning outsized returns for investors.

With the current @AxieInfinity sale live, here’s a look at why

1/

As you saw above, Binance IEOs have released a much larger % of token supply compared to other offerings

This helps facilitate more efficient price discovery as new tokens flooding the market don’t comprise as large of a percentage of circulating supply

In addition, these sales have been priced at reasonable valuations

This contrasts with other tokens that launched and have fallen victim to absurdly high initial valuations set by the market

By nature of the fixed price sale + lottery structure, it creates pent up demand which nearly always leads to a large price increase upon initial trading

This is predictably followed by a gradual decrease in price https://twitter.com/jpurd17/status/1183928858803703808?s=20

All in all, the majority of IEOs have still proven to be a good investment for those lucky enough to be selected in the lottery

While we’re unlikely to see a resurgence like the summer of 2019

The value-add from large trading communities, marketing efforts, and syndication can make IEOs look attractive as a viable fundraising mechanism https://messari.io/article/how-binance-launchpad-is-reviving-the-ieo?utm_source=jpurd17&utm_medium=thread&utm_campaign=ieoreturn