Are Initial Offerings Overpriced?

[virasog]

As far as my experienced joining ICO's before? I would say yes they've indeed overprice themselves. And I think this is one contributory factor to the downturn of most ICO's of today.

They initially thought that there are demands, unfortunately when everything is set, listing on exchanges etc etc, the price just died naturally and not even hitting its supposedly market price.

When ICO were introduced, they were of low value and when the coins hits the exchanges the price raises 2x - 3x but later the ico began to lose their value. The ico coins prices went even down when they reaches the exchange. Now people do not buy coin in ico and prefer to get it lower prices at exchanges.

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[bettercrypto]

Lyft, Pinterest, Zoom, Uber… these are the big names went to IPOs recently.
It seems IPOs are roaring back, especially compared with the freezing winter for ICOs.
SophonEX uses data to study whether the winter will also appear for IPOs, and shall we invest in these initial offerings? If so, how?

https://medium.com/sophonexchange/are-initial-offerings-overpriced-29c896dba35b?source=friends_link&sk=4f04597535434f96c1fe05101ff15745

Maybe, this article has something to verify why all coins dumped when they listed on exchange. But they are not suppose to have an inference which stated as over pricing in the initial coin offering. Because if it was overpriced then, why there are people who sold it in a lower price? Do not blame bounty hunters because even BH have their own standards on when they are going to sell their coins. Another thing, almost 2% or less of the token supply only allocated in almost bounties. So, definitely investors are also the one that dump the coin. Because they want to buy again in much lower price.

[tonyvo2017]

Lyft, Pinterest, Zoom, Uber… these are the big names went to IPOs recently.
It seems IPOs are roaring back, especially compared with the freezing winter for ICOs.
SophonEX uses data to study whether the winter will also appear for IPOs, and shall we invest in these initial offerings? If so, how?

https://medium.com/sophonexchange/are-initial-offerings-overpriced-29c896dba35b?source=friends_link&sk=4f04597535434f96c1fe05101ff15745

We should really invest. Because the crypto market is really lacking in big and prestigious businesses in the business world. If the big guys join, it will attract many other investors.
and after being listed on exchange, its value will be inflated because too many people want to buy.

[semobo]

Likely,that is why prices fell too short from the ICO price when traded on exchanges.

This shows the intention of the new projects so people need to research and analyse before investing or they will be the one suffers later.

[xvids]

Well back then ICO is a way to get the alt-coin in a much more cheaper price but right now ,
It seem's like ICO's are over price because every time that their crypto gets listed it would always be dump and be more cheaper than their actual ICO price.
We couldn't really say that it is over price because it was the initial price set by the creator the market just made their crypto price lower due to the low demand.

[sana54210]

i think why people say that Initial Offerings are Overpriced because the bonus that they give , just giving 50% token whenever buy 20 eth + was insane bonus i guess

When you see any ICO company giving out 50 percent easily, just know that they have over valued the coin and if you divide the initial rice by 2, that is exactly the value worth of such projects, most of these projects are really over value, it is just the way inflation works on a country by different business men and women, you see someone buy a product for $1, and then sell it for about $20, but before selling it, he would have over hyped the product as being the most quality, meanwhile the seller know the truth.

Only these developers know exactly that they over value their project but they will never own up to that fact so that the project will not look like a small company.

[Cnut237]

In every case, an initial offering is speculation. Prices can move both ways, both short- and long-term. It can be difficult to decouple hype and FOMO from genuine expectation. Crypto offerings suffer more from FOMO and more from price volatility, purely due to being crypto.

So I would say it is probably easier to determine likely true value of an initial offering if it is non-crypto, and especially if it is from an established company that is just going to the public. Then you have at least some understanding of the business model and how it has been working in practice, and how a route to profitability may pan out. With crypto, much less so - even if it is an established company that is now dipping into crypto - in most cases you can't really tie the likely success of the asset to the success of the company itself (although Facebook may be an outlier here).

Crypto initial offerings mean increased hype, increased FOMO, increased volatility and also potentially much greater reward or a drop to $0.

The one thing I would be wary of at the moment is IEOs - they really seem to be hugely over-hyped, especially Binance ones.

[Vishnu.Reang]

Nowadays, the ICOs are not just over-priced, but premature as well. Many of the projects decide to go for the ICO before the development is even 10% complete. And in most cases, the development remains frozen after the ICO is done. Once they encash their tokens, the team members lose their interest in the project and they get engaged with something else.

[Aldrinx00]

I think we can based the price in the fundamentals of the project like the overall product, uses cases and if it's for long-term. If we know that a project can be worth it in the future then overpriced or not it's a good buy.

[Tervelatuk]

I think we can based the price in the fundamentals of the project like the overall product, uses cases and if it's for long-term. If we know that a project can be worth it in the future then overpriced or not it's a good buy.

usefull coins in crypto market will have high value.so its difficult to said it is overpriced or not.in my opinion it depend on market supply and demand.if demand to coins so high ofcourse it value will be expensive and vice versa.

[metalglowd]

The price of initial offering I think depends on what Project. So we cannot say this is overpriced or not. If you only implement an application via mobile, I don't think it should be expensive.
Finally in the end all of those will become shitcoin, that was the bad thing.

[davinchi]

The price of initial offering I think depends on what Project. So we cannot say this is overpriced or not. If you only implement an application via mobile, I don't think it should be expensive.
Finally in the end all of those will become shitcoin, that was the bad thing.

Setting up a company that has plan of having a product that will globally be used is really not an easy thing to do financially which we all know that it requires lots of financial commitment, but the issue I see with at least 50 percent of ICO is that they over estimate the cost of establishing the project, and once they hype the price, the best way to meet up would be to place an initial offering value that will be too high for the worth of the project itself.

It would not have even been of any challenge to majority of investors if they deliver on their promises, but despite given an overpriced projects, the still don’t meet up with expectation or establish that which was actually proposed, the next thing you hear is that they spent majority of the money in advert.

[Dodoymabs]

The price of initial offering I think depends on what Project. So we cannot say this is overpriced or not. If you only implement an application via mobile, I don't think it should be expensive.
Finally in the end all of those will become shitcoin, that was the bad thing.

Based on from what I read and also experienced, it's really far from the ICO to the actual value. This is why investors are carefully choose and do some time to research because they already know only few can successfully do their promises. For the past years, many are already claiming that they have been scammed and sad to know that it still happened repeatedly.

[davis196]

Lyft, Pinterest, Zoom, Uber… these are the big names went to IPOs recently.
It seems IPOs are roaring back, especially compared with the freezing winter for ICOs.
SophonEX uses data to study whether the winter will also appear for IPOs, and shall we invest in these initial offerings? If so, how?

https://medium.com/sophonexchange/are-initial-offerings-overpriced-29c896dba35b?source=friends_link&sk=4f04597535434f96c1fe05101ff15745

Overpriced based on what?Everything that has a limited supply and huge demand is overpriced.Bitcoin is overpriced as well,and this is perfectly fine.IPOs aren't "roaring back",they are just a normal way for big startups to receive funding.Comparing them with ICOs is totally wrong.

[Harlot]

For any investors out their wanting to get the first piece of the pie may not look like a bad idea but the truth is you are just risking your capital just by wanting to get that slice. Even Warren Buffet is not participating has never participated in any IPOs from the start and he wants to see how the rest of the market reacts to it first before he even jumps in. The risk is also bigger when we are talking about the crypto market as you can't put in a fair value for their coin so you really don't know if it will double the first day or lose half of its value in the first few hours.

[Oilacris]

For any investors out their wanting to get the first piece of the pie may not look like a bad idea but the truth is you are just risking your capital just by wanting to get that slice. Even Warren Buffet is not participating has never participated in any IPOs from the start and he wants to see how the rest of the market reacts to it first before he even jumps in. The risk is also bigger when we are talking about the crypto market as you can't put in a fair value for their coin so you really don't know if it will double the first day or lose half of its value in the first few hours.

It do really looks like a gamble which is really an inevitable thing to happen on any investment but there are really people who are

risk takers even they do know the risk or not on the first place they do still decide to proceed.Regreting after would just vary if the said
investor is aware on the risk behind or not because not all are prepared to loss money and as you said some are just jumping in without
having that observation.

[bitgolden]

Not all ICO's are identical, I mean sure there are ones that are overpriced and there are ones that are not overpriced but in the end if you want to make sure the price of a ICO's is right or not then you have check not the day one of their trading but a month later, two months later.

If you are going to fund a project even on the concept stage without coin even existing and give money to them to make their project a reality then you should not divest all of it on the first day it hits the exchanges, you should definitely look for a longer term investment and hope that you would be capable of profiting in the end after a lot of time passes, I still have friends who are holding their ICO coins from 2 years ago and they are in profit. If you want to sell as soon as possible then you are not an investor, you are a trader.

[beerlover]

I guess I kind of understand why they are overpriced as well, after all the owner sees a concept and has a dream for the coin and they are building what they believe the next bitcoin maybe or at least something huge but sometimes people do not agree with them. You can trust a coin to be better than even bitcoin itself and should worth more in marketcap than bitcoin because you believe you are building something amazing but than if people do not care about it then there is not much the price can do.

So the price is first given by the owner who believes they are building something amazing but then the price is upto the people who actually use it and give it is worth so if they do not see the vision of the owner (which they mostly don't) then the price goes down of course.

[Oilacris]

I guess I kind of understand why they are overpriced as well, after all the owner sees a concept and has a dream for the coin and they are building what they believe the next bitcoin maybe or at least something huge but sometimes people do not agree with them. You can trust a coin to be better than even bitcoin itself and should worth more in marketcap than bitcoin because you believe you are building something amazing but than if people do not care about it then there is not much the price can do.

So the price is first given by the owner who believes they are building something amazing but then the price is upto the people who actually use it and give it is worth so if they do not see the vision of the owner (which they mostly don't) then the price goes down of course.

Coin owners perspective would be really different into those people who would support it.I strongly believe that

each coin owner do have the inspiration on making a coin which is more better than bitcoin.There are actually lots of them
existed as of today but people do still end up to support the most on where these all came from which is on bitcoin.

[Sithara007]

Until a few months back, it was common to find ICOs with a hard cap of more than $100 million. Now these guys have become more reasonable. I checked some of the top ICOs and the soft cap was kept below $5 million. The hard cap ranges from $25 million to $50 million (it doesn't matter really, as none of these projects are likely to achieve the hard cap).