Bitcoin Forum

I invested in a couple of IPO's in the last month and both have lost me money. Wondering if this era of making money in IPO's is over. Either they are crap and no one invests or lots of people invest and their is a rush for exists as soon as it hits an exchange.

because most of them are scams.
the scammers used to take money and run.but now they get their coins listed on exchanges,bought themselves and dump all.

There's the easy money right there. Happens every time.

It's seems like the position to take these days is not invest in the IPO and buy after the first dump. I've had some limited success doing just that recently.

Which ones did you invest in?

Much of the present IPO crop is setting themselves up for a fall. They're asking far too much money for something that starts off as vapour.

NEM, Node and plenty of other examples showed how it should be done. Ground up is a healthier way to roll.

The problem is that most of them are scams and the ones that aren't are overpriced. For example, I believe Etherium raised 15m. So the Etherium marketcap is already at 15m and it hasn't even launched yet. Now go look at Coinmarketcap. How many coins have a marketcap above 10m?

So you see, even though there is a chance something like Etherium will go much higher, when it is given such a high marketcap right off the bat there is a very high chance that the price will drop upon release.

Same things happen in the stock world. Look at Facebook. And now Ali Baba. I guarantee at some point people will be buying shares substantially lower than the IPO price.

Bottom line - avoid IPOs, if you are interested in the coin wait until it is launched on an exchange because more than likely you will get it at cheaper than IPO prices.

I don't see NODE as a success. It's floundering pretty low down the Coinmarketcap list for a second generation coin.

I wonder if NEM will also be a dumpfest.

But folks didn't have to lay out significant amounts of money to get in on the ground floor. It was free for the very earliest.

That surely does set things up for a short term dumpfest but I think they'll both have legs.

IPO's is the easiest way to say goodbye to your money here in the bitcoin world. Think of it like that, there are 2 options:

1. Coin developers fail to complete the promises, go away with the IPO founds giving investors from little to nothing compared to what they promised.
2. IPO is successful, people rush to exchanges for a quick buck dumping their coins and lead the price to dust.

So unless you're looking for longterm profitability, IPO's are not going to give you easy money. (Exceptions always exist.)

I agree, they'll both have legs.

Another perfect example that illustrates how it is always best to wait for the dumpfest as soon as the coin hits an exchange.

There have been a multitude of IPOs that sound like they are for groundbreaking 2.0 coins, but turn out to be for cut and paste shit coins. I doubt people will fall for them any more because once bitten, twice shy.

it's a resetting time, this will end when everyone will forget about mining

Hopefully the time of those endless IPO's is over.

Most of them were just to enrich the devs.

Devs who just copied other coins.

Who would be the first to sell below the IPO price?

Someone who didn't pay the IPO price for the coins.

Who could that be?

Believe it or not, that's normal for the stock market - to the point where there's a market slogan that covers it: "In the stock market, 'used' is better than 'new.'" Case in point: there was a time when you could pick up shares of Facebook for around $25.

It's not the ipo's that are impatient and rush to exchange and dump for lower than what they paid for it. Why would anyone do that unless they really needed btc for some other reason and didn't have it at that moment. It should be the exception rather than the rule. Seems most dump right away.

In all seriousness, did anyone make any money with the Ethereum IPO? I haven't invested in any IPO because I just cant trust any. But IPO scams will exists forever since there will be fools forever.

You just need more patience.
The development of these coins takes time. E.g. NODE.
They have some really great features (instant transaction speed, different and versatile program language, etc.).
Everybody thinks they will be rich after each IPO.
It might take one to three years before all these coins start taking off, when the masses get interested in crypto.
It took early bitcoin and NXT investors also several month's before they made a fortune.
Also many of them lost fortunes by selling way to early.
The crypto scene is still in it's infancy.
You only lose money when you sell at lower prices than you paid for.
If you hold on them for the long run, you will be rewarded big time.
Off course there are a lot of scams and sh**coins but there also a lot of promising coins that will succeed for sure.

The Node IPO actually slipped past me, but nobody could really miss the NEM IPO.  I am pretty excited about it because I think it is the first time every in crypto that something like this is being tried.  I honestly don't know if it will be a dump or buy.  Of course some of both will be happening.  It is a very exciting time.

The exact same could had been said for NxT.  Those people bought in October when 1 BTC = $100ish.  I bought most of my BTC, in comparison, when it was above $700.

The guys spent 1.5 BTC limit ($150) and months later were sitting on $4-$6 million and yes a lot of them have been dumping ever since.  The moment NxT shows any increase in capitalization or increase volume - the whales start dumping.

Well it wasn't as publicized but NODE stakeholder list had a lot of recognizable names on Bitcointalk.

I don't think it's even possible.  Ethereum is going to start at $16 million capitalization.   Where's the ROI?   If Ethereum went up 100x in value it would be $1+ billion capitalization.  That's compared to earliest people in Bitcoin who saw 450,000 times return.  Even today I think there are alternates that will later attain that rate of return.  Ethereum is just too big at launch and will fail for that reason.


https://blog.ethereum.org/2014/08/08/ether-sale-a-statistical-overview/

Even on Vitalik's blog he said top 100 wallets control almost half of Ethereum.  Wallets are not people.  When you invest huge sums you break it up into multiple wallets to minimize potential losses if they happen.  Ethereum looks to be a rich man's ponzi scheme (like Mastercoin 2.0) and for that reason it'll fail as there will be no subsequent buyers.