ICOs Profited Nearly $820 Million Above And Beyond Initial Offering From Ethereum Sale During Bull Market
BitMEX Research, the research arm of cryptocurrency derivatives trading platform BitMEX, has revealed that ICOs have surpassed their funding targets set during ICO's in terms of USD on the sale of the Ethereum during the bull market.
BitMEX Research, the research arm of cryptocurrency derivatives trading platform BitMEX, has revealed that ICOs have surpassed their funding targets set during ICO’s in terms of USD on the sale of the Ethereum during the bull market.
In fact, ICOs have realized gains of $727 million and unrealized gains of $93 million for a total net gain of $819 million.
ICOs raise over $11.3 billion by selling ETH
In their “Ethereum Holdings In the Initial Coin Offerings (ICOs) Treasury Accounts” report, BitMEX research showed that ICOs have been able to generate over $5.4 billion by selling the Ethereum they raised during their fundraising phases.
BitMEX showed that at the macro level, ICOs have already realized $727m in profits by selling the Ethereum they raised.
The report, which was conducted with the help of UK-based crypto asset intelligence firm TokenAnalys, showed that more than 15 million ETH has been raised by 222 ICOs since the start of the year, with 4 million of those tokens still remaining in the wallets of the companies behind those projects today.
Around 7.9 million ETH was raised by other projects, with EOS raising a total of 7.2 million ETH alone.
EOS was one of the biggest ETH ICO success stories. The Block.one team was able to raise nearly $4 billion during its ICO. The research found that they would have seen just $1.65 billion if they had sold the same ETH at the current market price.
Overall, the total amount of Ether either sold or transferred out by ICOs stands at 11,325,121, generating $5.452 billion in the process.
The research firm further added that ICOs have clearly been a phenomenal success, and even a further significant fall in the value of Ethereum wouldn’t significantly affect these projects.
The CEO of BitMEX just last month referred to Ether as a “shitcoin”, predicting that it would drop below the $100 mark.
No panic selling of ETH by ICOs
The study contradicts claims that Ethereum price is suffering from a panic sell.
“We conclude that the ICO treasury accounts have a much lower level of exposure to the price of Ethereum than many may have thought. The ICO projects or project teams essentially made out like bandits, at least with respect to the Ethereum they raised. As a tool to raise funds, the ICOs have clearly been a phenomenal success, to such an extent that even a further significant fall in the value of Ethereum will barely make a dent into the success”
However, BitMEX pointed out that there is a chance of some flaws in its research. The firm stated that they may have missed some ICOs, and could have wrongly assumed that Ethereum transferred out of a projects address cluster was sold.
In a recent interview, Fundstrat’s Tom Lee stated that despite the current price of Ethereum, he believes that it would rally to reach $1,900 before the end of the year.