The Shocking Results of the 2022 IDOs - Who Made the Most Profits?
This report breakdown provides an overview of the performance of various IDO launchpads (such as Seedify, DAO Maker, SushiSwap, Impossible Finance, Coinlist, Republic, and Polkastarter) in 2022.
2022 has not been the best period for the cryptocurrency realm. The prolonged bear market and the fall of cryptocurrency behemoths have had a cascading effect on the whole industry.
Chris Zaknun, the founder of one of the reputed IDO launchpads, DAO Maker, has released a twitter thread with a report on the performance of various launchpads. The report breakdown covers details including the total funds raised, the total value distributed, and the honest ROI of some of the most relevant launchpads. Before we dig deeper into the report, let us understand in brief what are IDOs.
Initial dex offerings, or IDOs, have emerged as an alternative to an initial coin offering (ICO). An IDO is a cryptocurrency offering that happens on a decentralized exchange (DEX).
The IDO was developed to address the "traditional" ICO crypto crowdfunding model's drawbacks. Basically, how this works is that a DEX will be employed by an IDO, and the token sales will be carried out via the DEX.
The IDO will vest the tokens in the DEX, which then carries out the process of distribution and other activities. Key advantages of IDOs include a fair and square platform for everyone, the absence of sharing personal information, and an equal chance for small projects.
Some of the well-known IDO launchpads in the industry include Seedify, DAO Maker, SushiSwap, Impossible Finance, Coinlist, Republic, Polkastarter, etc. Let us dig deeper into the report.
2022 IDO performance report breakdown
Zaknun commenced his report by citing an example of Step.App IDO conducted on DAO Maker to depict how he calculated the total value distributed and also the total profit or loss generated by the launchpad for its users.
Here is an approx table of about how much the launchpad would have made in 2022 if it had been a fund.
|IDO Platform||Profit / Loss|
|Seedify Fund||+ $1.8M|
|DAO Maker||+ $51.6M|
|Impossible Finance||- $3M|
According to the collected data, Seedify had 15 IDOs in 2022. Out of all these IDOs, Seedify managed to raise $5.75 million. A detailed look at the IDOs reveals that 10 out of the 15 IDOs had a negative return on investment (ROI).
However, only five out of the 15 IDOs had a positive return on investment. Out of these five, four were in Q1 2022, when the market was relatively better as compared to the rest of the year.
There were 19 IDO offerings by DAOmaker in 2022. These IDOs collectively raised over $17 million, which is almost close to the $18 million figure from 2021.
.@TheDaoMaker had 19 offerings in 2022 and raised $17M. About the same as in 2021 (18M)— Chris Zaknun (@czdaomaker) December 24, 2022
12/19 were HonestROI positive
Most of the returns came in Q3 & 4$Sweat$fitfi$Xana
TVD (2022): $68M
Profit: 68M - 17M = $51,000,000+ pic.twitter.com/RaLLCVRSOc
According to the details from the tweet, 12 out of the 19 IDOs had a positive ROI. Additionally, the majority of returns happened in Q3 and Q4, primarily from Sweat, fitfi, and Xana. The total value distributed is $68 million, and the sheer profit stands at $51 million.
A look at Impossible Finance reveals that four out of the six launches had a positive ROI. The total profit also stood at $903k. Coinlist managed to raise $151 million as two out of the five launches had a positive ROI. The majority of the fundraising was done through NYM, through which they managed to make a $5.6 liquid profit.
Majority of Republic's offerings are unlisted, with the listed ones raising $13 million. It incurred a total loss of $4 million plus locked money.
Polkastarter had the worst ROI compared to other pads. According to the data, ten out of the 11 IDOs had a negative ROI. The available data leads to the conclusion that 90% of individuals lost their money through Polkastarter's offerings in 2022.
Last and least: @polkastarter— Chris Zaknun (@czdaomaker) December 24, 2022
10/11 IDOs are ROI negative. In order words: in 90% of the cases, people lost money on $POLS offerings in 2022.
Total accumulative loss for their users -$3.4M
Basically, they raised 7.6M and returned 4.2M pic.twitter.com/Llyq714NeB
Conclusion of the IDO report
We can conclude 2022 IDO ROI report by stating that the only launchpads that generated profits in the bear market was DAO Maker, Seedify Fund and Coinlist. However, the profits made by Seedify Fund and Coinlist were before March 2022 when the market was less bearish.
Moving forward, it will be interesting to see how the future of IDOs develops. IDOs present a promising investment opportunity, but their future is still uncertain. While there are no guarantees of success, IDOs clearly have the potential to offer investors large returns, if managed properly and with due diligence.