Are Initial Offerings Overpriced?

[GabrielleGGG]

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

[carlfebz2]

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

Your choices since its your own funds to be used on investing into these things. IPO's,ICO,IEO's all of them are just overpriced.
Don't know what the actual basis on each token price they are offering.

[thehun]

When investing in startups you are not paying for current revenues but for growth expectations. Do you expect these companies to have a massive growth in the next years? If that's the case they might not be as overpriced as you think.

[HouseStark]

bottom line is that, all offerings (IPO or ICO) are based on speculations and you know things that rely on speculations have two ways - go right or wrong. I think some many IPOs were given too much undue attention and hype (Uber is a typical example).

[creeps]

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

It only becomes an overpriced IPO’s if you don’t see the worth of the company, and for sure that price also approved by the regulating body. If you think IPO is overpriced then better to wait for the exchange listing and do invest after that, two way for that company to move either to go up or to go down, its really a matter of choice and trust with the company.

[kumala_abi]

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

It only becomes an overpriced IPO’s if you don’t see the worth of the company, and for sure that price also approved by the regulating body. If you think IPO is overpriced then better to wait for the exchange listing and do invest after that, two way for that company to move either to go up or to go down, its really a matter of choice and trust with the company.

overpriced or not depend on projects quality.if we have understand current projects have good quality ofcourse we will pay more on it.don't ever expecting we will get cheap price on good projects in IEO.market agree in which price they will paid for it.

[BennyK]

Initial offerings are not over priced because every project has its set target and based on these goals, price are set for the various phases for token sales. It becomes unfortunate if a coin drops in ICO, STO, or IEO price after listing and never show signs of rising to surpass that price. This is why investors must study the project well before joining in order to know the capabilities and potentials of the project.

[boyptc]

Close this thread that you also created --> https://bitcointalk.org/index.php?topic=5155891.0

You can create one topic per thread, no doubling.

[shoreno]

they are not overpriced but ico's are infact have a cheap starting price  .they have alot of bonuses and the bonuses differ at a given time frame . the earlier you invest , the more bonuses you will get but the later you invest the lesser the bonus you will get ( vice versa )  . 

the price of the ico coin only becomes expensive or over priced after the ico have been succesfully ended or if the coin has already been listed on an online exchange .

[Sithara007]

Just compare the situation we had back in 2015 and 2016, to the one we have right now. Anyone remember the Ethereum ICO of 2015? Back then the product (Ethereum token) was finalized and most of the development was complete before they went for the ICO. And they had priced it very competitively, with the hard cap set at around $18 million. On the other hand many of the ICOs nowadays have their hard caps set above $100 million. And the biggest joke is that many of them are yet to start any development. All they have, is an idea.

[jademaxsuy]

Just compare the situation we had back in 2015 and 2016, to the one we have right now. Anyone remember the Ethereum ICO of 2015? Back then the product (Ethereum token) was finalized and most of the development was complete before they went for the ICO. And they had priced it very competitively, with the hard cap set at around $18 million. On the other hand many of the ICOs nowadays have their hard caps set above $100 million. And the biggest joke is that many of them are yet to start any development. All they have, is an idea.

Yeah this one talks real. This is the reality project nowadays is more on papers but does not have development in the process. Which means that most ICO projects are still subject for improving and this is why ICO projects needs more time before investors will be able to profit.

[mu_enrico]

IPO is indeed overpriced, but ICO/IEO is way more overpriced. Let's say a stock has 10x P/E Ratio. It means that you will get $ 1 for every $ 10 that you spent. Let's assume no capital gain, and P/E stays the same; then you will need ten years to recoup the dollars you spent.

Meanwhile, for ICO/IEO, P/E Ratio would be more than 1,000x *lol

[Indamuck]

We are in a really weird time where companies that don't even turn a profit are worth a lot of money.  Because Amazon was successful with this strategy all these other companies get overvalued.  Going public is just a way for the owners to cash out easily, I would much rather stay a private company if I actually cared about doing good and not just money.

[Naida_BR]

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

I don't think that any of these companies would ever make an ICO so I can't see any correlation of those two.
Those companies was just in search for funding and IPOs seemed to be the best solution for them

[royalfestus]

The big name companies moving into cryptocurrency are using their good names to acrue that big funds, they have enough money in the bank to back it up but if you observed most recent startup in cryptocurrency, they now raised fund below $10m. IMO its a level of correction in the space recently and it doesnt mean that the company wont succeed. It is though important to have capacity to make big volume trade daily in big exchange, we will also need to consider the percentage of the hardcap traded.

[AjithBtc]

Just compare the situation we had back in 2015 and 2016, to the one we have right now. Anyone remember the Ethereum ICO of 2015? Back then the product (Ethereum token) was finalized and most of the development was complete before they went for the ICO. And they had priced it very competitively, with the hard cap set at around $18 million. On the other hand many of the ICOs nowadays have their hard caps set above $100 million. And the biggest joke is that many of them are yet to start any development. All they have, is an idea.

The reality with ethereum is completely different compared to the rest of the altcoins that follow as well gets developed on other platforms. Ethereum has got the perfect funding team that kept every development progress and came out with the perfect product. What's been said is true, there are lot of ideas and some are truly unique. When such ideas are given support truly that'll succeed. In most cases the project gets dropped which is lack of funding, even there are assets in the top list that lacked funding and further progress in development carried out after break.

[Baofeng]

If you are truly an investor, of course you wanted to spread your eggs and not just put everything in one basket. For me, every market will have to at least suffer some winter not just in crypto, but one thing is for sure, whatever the side of your company is, if you really wanted to grow then you will really need to go to his IPO/ICO and offering something in return to the public. That's how the market works and that is the established business model that everyone has followed.

[timerland]

If these crowdfunding methods are overpriced, then the demand within investors will simply be less.

That's how the price mechanism works, and I don't see a problem with offerings setting their own price, even if it overvalues their securities/tokens, because there will simply be less demand for it.

I think though that a lot of the investors right now in all forms of initial offerings are probably putting too much trust in vaporware and completely unregulated, and completely theoretical ideas and all that, due to the speculative nature of them - but I expect as the market matures, people realizing that certain unfounded offerings are not a sustainable investment option.

[FanEagle]

I think it depends on how long a company has been operational. The ICO's are VERY overpriced because we are talking about something that is on idea stage and some of them are even just technical without any execution, tell me how many coins we have seen so far that basically told you an idea, got funded and then created a coin with the technological background and that was it, nothing more was done, maybe developers developed the coin a bit more but that is it, you couldn't even use it anywhere. That is why ICO's are of course a lot more overpriced than the lyfts and ubers of this world because those things actually got funding from people on their series a-b-c-d or whatever levels and then they went fully operational to a Goliath in a business which afterwards they had an IPO, they were already big when the IPO happened.

[xabre]

Some time initial offering or IEO have over priced but many time IEO coin have lower price how ever great or best exchange it self, last time we know about IEO of matic coin have lower price after active for trading on exchange.