Ocean Protocol Plunges 80% Following Its IEO On Bittrex

Ocean Protocol price plunge

Amidst the ICO era weakened and Initial Exchange Offerings (IEOs) in the floodlight, many are of the opinion that the fresh fundraising model will help curb fraud while helping promising blockchain-related projects raise funds by means of token sales on cryptocurrency exchanges and additionally, rewarding investors with substantial profits.

So far, several significant exchanges, involving Binance, OKex, and Houbi, have with success managed IEOs for different blockchain projects, and the results were excellent: Both for the projects as well as the investors.

While IEOs suggest many benefits over ICOs, largely because trusted exchanges organize them, this model is not flawless, just like we have found in the case of Ocean Protocol, a blockchain data sharing platform.

On April 30, 2019, well known crypto exchange, Bittrex, set in motion an IEO token sale for Ocean Protocol. The project, which offered 56.4 million OCEAN tokens for sale for $0.12 per token, managed to raise $6 million by the end of the IEO.

100% Raised, 80% Dumped

Upon the completion of the token sale which lasted for 3 days, the cryptocurrency was listed on Bittrex for trading on May 3rd. The whole thing seemed good until the price discovery.

The token has relinquished about 80% of its IEO price since it started trading on Bittrex exchange. This speedy dump will no doubt haunt long term investors as they may possibly begin to bemoan buying the token.

Ocean BTC ChartOcean Protocol on Bittrex. 5 min chart

Having said that, the price of project-based tokens (IEO in this case) tumbling not long after they are listed is not new in the industry– it transpired with the majority of token sales in the past. Despite the fact that there are lots of causes responsible for it, the primary factor is that way too many investors go for “short” even when it is a long-term project, and this has a tendency to keep the price down for some time.

Ocean Protocol (OCEAN) price for the trading day is $0.03 with a daily volume of  $1,510,399 across all exchanges.

The post IEO’s Nightmare: Ocean Protocol Lost 80% Following Its IEO On Bittrex appeared first on CryptoPotato.

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