Only 1% of 2022’s Public Token Offerings Have Returned 10X

According to CryptoRank, there have been 619 public token offerings this year.

Amongst them were some notable token drops from move-to-earn platform STEPN, the Bored Ape Yacht Club, and the play-to-earn game, League of Kingdoms.

Earlier this year we saw STEPN’s GMT token rally from 1 cent to $4.10 in a matter of days upon its IEO. Ape Coin too rallied from $1 to $23.62 on the back of speculation that you needed it to buy land in the Bored Apes’ Otherside metaverse.

Ape Coin has shed most of its gains. Source: Coinbase

But as macroeconomic factors — soaring inflation, interest rate hikes, war in Ukraine, and so on — plus the contagious and devastating effects of the Terra/Luna bank run took hold, crypto markets have corrected big time.

GMT has stepped down to $1.47 and APE is down to $8.08. Both are about 65% removed from their all-time highs.

FOMO-Fueled Speculation

A few weeks ago, markets were riding a massive wave of FOMO-fueled speculation and capital surpluses. Over US$14.6 billion was deployed into more than 500 web3 deals in Q1 of 2022 alone.