Are Initial Offerings Overpriced?

[Jating]

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.

[Genamant]

i do not even know what are the basis of pricing of this initial offerings
i guess it will really depend on the solidity of the project that can make you see potential
and future growth in value.

[bearexin]

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

You're investing with the hope you're going to make future profit if the companies grows later on. So it's up to you, if the company is offering something you think it's in popular demand, it's up to you to go for it and invest since you're sure that it is going to grow and you will gain from it. But if it happens to be a failure, then you will be sorry for yourself since you're going to end up with loss. So I don't think they are overpriced, they set their price that they are comfortable with, you buy it if you can afford it and wait for increase.

[kumala_abi]

understanding projects will help to us ,it is worthed to pay more on its price.market will decided the token price already expensive or cheap based on developtment and product delivery from team.so we could to say its overprice or not.

[Serco]

understanding projects will help to us ,it is worthed to pay more on its price.market will decided the token price already expensive or cheap based on developtment and product delivery from team.so we could to say its overprice or not.

projects quality will be the decision key for investors.i see many Initial offering price in market could give high return to investors, and on high price there are still many people buy it.so in my opinion if this thing happen its not overpriced yet.

[Caladonian]

understanding projects will help to us ,it is worthed to pay more on its price.market will decided the token price already expensive or cheap based on developtment and product delivery from team.so we could to say its overprice or not.

projects quality will be the decision key for investors.i see many Initial offering price in market could give high return to investors, and on high price there are still many people buy it.so in my opinion if this thing happen its not overpriced yet.

There's still lots of people who's taking the chance especially when the Initial offering came from reputable exchanges, investors followed the project and
rushing to buy in, hoping that the price /value will rise high after the sale got finished and start being listed and traded to sponsor exchange.

[rez303]

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.

Yes. There are currently some bad projects and very bad policies. They can use a little money to get quite good exchange such as IDAX, Coineal to be notified of IEO on their trading platform.
then, the project takes advantage of the hot level of IEO and evaluates its business higher than usual.
New investors often do not learn and prefer to invest heavily in such projects, resulting in heavy losses.

[el kaka22]

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.

If you have no funding at all and you only have an idea and a website asking for funding for a marketcap of 100 million then I hope that coin gets nothing at all.

You HAVE TO have a bit of funding and you have to develop a coin a bit before it all starts, ethereum did it the right way, if you lack funding and you can't finish the project then you may be just doing the right thing by stopping, if you had a great idea and an awesome concept with a lot of free work (just coding, designing, marketing etc) then you can build a perfect plan for a coin in 1 week, however if you only have an idea and want to be funded to hire your coders and designers etc then you basically have zero.

These are the reasons, I still support the times when coins just didn't exist one day then they published the wallet and existed the next day, that is how it used to be and that is how it should be, nobody needs tens of millions of dollars for it.

[styca]

The price of initial offerings always involves an element of guesswork. It may be tempting for a company to overprice, but obviously at the same time it can be counterproductive if everyone agress it is overpriced. Ultimately I suppose they have to set a price that consensus opinion will recognise as being slightly low, as expectation of profit is what draws people in.

[sana54210]

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 IPO is being overpriced because it has regulation, IPO has always been the safest means of investing and was once the most popular crowd funding method used to legally collect money from investors until ICO became more popular and the pushed IPO aside, I guess now that ICO is becoming so unsecured, investors are moving back to IPO which I expected if nothing is done to salvage ICO and build its image back.

I hope it doesn’t get to a point where the only means of crowd funding would be IPO, IEO and STO. ICO still has lots of advantages especially for those companies that does not have startup capital, it is has been the easiest way of them raising funds for most of the physical projects some cities are having, that is for the ones that are not scam.

[KlepZ]

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[guoyu78]

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.

Most of the ICO’s we have in the market are overpriced to me, especially the ones that are under performing and until they proved themselves not to after they get listed and we see that they have working product that is making their value increase.

The projects that I cannot classify as being overpriced are premined projects, because they already have a value from their personal establishment and from such value, they can really calculate the worth of the project which will be based on that they will offer shares to the public, unlike all these other ICOs that doesn’t have startup capital and then just fix value based on what they assume will be the future value.

[brotherwood12]

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

[ethereumhunter]

You don't have to invest with them if you are not sure and you don't have any clue about the project. It is better to play safely in any of investment because we don't want to get scam by them. If you still want to invest with them, you need to search for more details about the project so you can find what project that will be good in the long-term and that is not easy to find them.

[fiulpro]

If a company is already well renown then there is no point in giving away the starting price at so low , therefore it is supposed to be something that is enough to make their place justified.

On the other hand

If a company is starting from a scratch then they give away a price that is very well thought of , a price which actually goes well what they have put together in all the amount of time , and this price tends to be not high .

Therefore I think it is totally fair to be able to choose a price for your company , because it's them not us who actually have worked hard to create that .

I think price is reasonable howsoever they put it but this reason also sometimes have boundaries.

But I think they are not overly priced.

[blockchainwriters]

in 2017 most of icos are over priced they faced the blackslash of price down in 2018 and 2019 so now the icos or ieo are working on bring right developments and good supply and pricing as well we can expect icos market will come back this year

[freedomgo]

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.

Exactly, you as early investors are risking your money for the future of the project, if you believe it has great potential to grow, that would give a good return of your money.

Just like in ICO, we buy at ICO price and if the price is trading over ICO price, that is already profit when you sell.
However, some still hold as they see in the long run it will make them more profitable.

What I believe is easy to determine is whether the project is overvalued or undervalued.

[Reid]

Are you really going to get some answers here and apply it to your investing choices and decision?
Me?! No. I want to create my own investigations with this type of ICO's. That way you will not be blaming anyone or anything but just yourself.
Also, regrets will be on you and that is where you will rise again.

If it is overpriced for you then let it go. Pick another one which is cheap but have a better feature for the future.
ICO's now tend to die in just a year or even after ICO. Better look deeply in their management if they are that strong to stay finishing the roadmap.

[Ranly123]

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 coins offerings do overpriced their tokens. It just the price will drop once exchange is online because most investors who avail bunoses dump their coins which compliment to the total supply in the market.

[anu1908]

it seems this issue with market valuation and token supply is still a big problem in the crypto economy. the question is simple yet the answer is difficult. how do we know that the supply is not too much and the initial price is the right amount?

most of the time, ico company just decide that they'll make this or that amount of tokens, and considering the number of that tokens, then they'll need to price their token at X dollars to get reach the hardcap. seems an easy thing to do but then it raises more questions as to the valuation and ecosystem value later on.

if anyone is interested, this is a good topic for their research though.