A New Trend in Crypto Funding Campaigns: Companies Resorting to IEOs

Crypto market stats show that over 65 IEOs have been launched in the past six months, with about 40 of them having reached their soft cap or even hard cap successfully.

About 15 IEOs will be launched in the next three months.

Notably, half of them are conducted by projects that have already completed their IEOs.

All told, 245 projects conducted an IEO and managed to collect $3.4 billion over the past three years.

As the crypto market is constantly evolving, many projects consider repeating their IEO rounds, especially if the previous one turned out to be successful.

Some call it a "Second IEO," while others refer to several IEOs being conducted by the same project on different exchanges as a "Multilaunchpad IEO.".

Another new IEO subspecies that has appeared on the market is the security token exchange offering.

Multiple IEOs and STEOs vs. an IPO: Who wins the race?Jay Ritter, a finance professor at the University of Florida and IPO expert, spent many years studying the development of the IPO market and has come to the conclusion that the market has been shrinking over the past few decades.

Notably, most IEOs are held by projects focused on trading and investing, payments as well as commerce and the Internet of Things.

Companies resort to STOs and ICOs to raise money for the development of products in markets such as mining, social network, marketplace, content management, data storage and AI.According to the statistics, the number of investments attracted through IEOs from April 2019 to September 2019 comprised 5% of the amount attracted for the same period from IPOs.