BitMEX Research: ICO teams have allocated $24B in tokens to themselves

ICO and IEO • January 16, 2019, 10:49AM EST
UPDATED: January 16, 2019, 12:13PM EST
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BitMEX Research, the research arm of cryptocurrency exchange BitMEX, published a piece in collaboration with TokenAnalyst which analyzed the token allocations of over 100 ICO teams. According to the analysis, ICO teams initially allocated $24B worth of their native tokens to themselves. At peak valuation, these token allocations were valued at over $80B. However, BitMEX Research notes that "in reality, liquidity was too low for this value to be realized." Furthermore, due to the tokens' precipitous drop in market value, these allocations are currently worth $5B.

In conclusion, BitMEX Research estimates that ICO teams have profited nearly $13B from their ICO process "with very little work, accountability or transparency," adding that while ICOs have proven to be "extremely attractive" for project founders, the results for investors "have not been as attractive."

AUTHOR

Steven Zheng profile picture Steven Zheng

Steven Zheng is a researcher for The Block. He joined The Block in August 2018. Steven graduated from St. John’s University with a degree in economics. Previously, he covered blockchain and crypto at Radicle, a startup analytics firm. He also had brief stints at Cheddar, a media startup, and Bowery Capital, a venture capital firm. He owns bitcoin. Follow Steven on Twitter at: @Dogetoshi

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