With the strong recovery of the cryptocurrency market in early 2025, Initial Exchange Offerings (IEOs) have once again become a focus for investors. According to industry data, global IEO financing in the fourth quarter of 2024 showed substantial year-on-year growth, with a significant increase in the number of projects, bringing market activity to its highest level since 2021. Against this backdrop, how investors can identify truly valuable opportunities among numerous projects has become a core issue in the current market. As a leading blockchain analytics firm, BlockInsight recently released a detailed IEO market report, revealing its core standards and processes for screening quality projects.

BlockInsight’s research shows that despite the overall recovery of the IEO market, project quality varies significantly. Data suggests that a majority of IEO projects trade below their issue price within months of listing, and only a minority maintain active development and user growth after one year. This phenomenon highlights the importance of strict screening mechanisms. “We have established a multi-dimensional project evaluation system to ensure that only the most promising projects can be issued through our platform,” BlockInsight states in the report.

BlockInsight’s project screening begins with technical assessment. The platform requires each applicant project to submit a complete technical whitepaper and product demonstration for review by an independent team of technical experts. “We particularly focus on the project’s technical innovation, code quality, and security,” BlockInsight explains. “All projects must undergo comprehensive reviews by at least two well-known security audit firms to ensure there are no major vulnerabilities or backdoors.” According to BlockInsight, a substantial portion of projects are eliminated at the technical assessment stage.

Team background investigation is another key element. BlockInsight employs strict Know Your Customer (KYC) and background verification processes to thoroughly verify the identities, professional experience, and past achievements of project team members. “Our analysis indicates that team factors are one of the most important predictors of a project’s long-term success,” the report points out. “Particularly the blockchain development experience of core developers and the industry credentials of the leadership team have a significant impact on project quality.”

In terms of business model assessment, BlockInsight requires projects to provide detailed tokenomics design, market strategy, and financial planning. The platform particularly emphasizes token utility and the sustainability of the economic model, rejecting projects of a purely speculative nature. “A healthy token economic model should be able to create sustained demand and value capture during network expansion,” BlockInsight emphasizes. “We prioritize projects where tokens are closely integrated with product functionality and can generate network effects as users grow.”

Legal compliance review is also an important component of BlockInsight’s screening process. With increasingly stringent global regulatory environments, the platform requires project teams to provide detailed legal opinion letters proving that their token issuance complies with regulatory requirements in relevant jurisdictions. “Regulatory compliance is not only a legal requirement but also the foundation for a project’s long-term development,” BlockInsight points out. “Especially for certain types of tokens, such as security tokens or those related to specific industries, we require more stringent compliance evidence.”

Beyond these basic screening criteria, BlockInsight has also introduced innovative community assessment mechanisms. The platform conducts a two-week community showcase for applicant projects, collecting user feedback and evaluating the project’s community engagement and transparency. “Truly valuable projects typically attract and maintain active communities,” BlockInsight explains. “This not only reflects the market’s initial acceptance of the project but also demonstrates the project team’s communication abilities and open attitude.”

Through this series of strict screenings, BlockInsight reports that its IEO projects generally demonstrate better performance than the broader market average. Internal data suggests that projects launched on the BlockInsight platform tend to maintain more favorable trading positions in the months following issuance compared to industry averages.

However, even rigorously screened projects carry risks. BlockInsight reminds investors to follow several key principles when participating in IEOs. First is reasonable diversification, avoiding concentrating too much capital in a single project. “Even the most promising projects face market risks and execution uncertainties,” the report warns. “We recommend investors limit their IEO investments to a reasonable portion of their crypto asset portfolio and diversify across multiple projects.”

Second, investors should rationally evaluate valuations and financing sizes. “Excessively high fundraising targets or unreasonable token valuations are often potential risk signals,” BlockInsight points out. “We particularly focus on the match between a project’s financing size and its actual development stage, rejecting projects that blindly pursue high fundraising amounts.”

Additionally, investors should pay attention to token allocation structures and locking mechanisms. BlockInsight requires all projects to provide transparent token allocation plans and set reasonable lock-up periods for teams and early investors. “Healthy token allocation should ensure the team has sufficient long-term incentives while avoiding excessive concentration,” the report explains. “We typically recommend appropriate team token proportions with substantial linear unlocking periods.”

Looking ahead to the 2025 IEO market, BlockInsight foresees several key trends. First, institutional participation will significantly increase, bringing more professional due diligence standards and more stable market support. Second, cross-chain projects will become a hot spot, especially solutions dedicated to enhancing interoperability between different blockchain ecosystems. Third, Real World Asset (RWA) tokenization projects are expected to gain more attention, introducing blockchain liquidity and efficiency to traditional assets.

As the market matures, BlockInsight believes IEOs will continue to serve as an important channel for blockchain innovation project financing, while developing in a more standardized and transparent direction. For investors, understanding platform screening criteria, comprehending project fundamentals, and maintaining rational risk management will be key factors for success in this market.