Are Initial Offerings Overpriced? - page 6.

sana54210

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Quote from: GabrielleGGG on June 18, 2019, 04:13:44 PM

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.

styca

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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.

el kaka22

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Quote from: AjithBtc on June 19, 2019, 05:15:01 PM

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.

rez303

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Quote from: BennyK on June 18, 2019, 10:57:16 PM

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.

Caladonian

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Quote from: Serco on June 21, 2019, 10:45:03 PM

Quote from: kumala_abi on June 21, 2019, 07:54:13 PM

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.

Serco

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Quote from: kumala_abi on June 21, 2019, 07:54:13 PM

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.

kumala_abi

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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.

bearexin

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Quote from: GabrielleGGG on June 18, 2019, 04:13:44 PM

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.

Genamant

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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.

Jating

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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.

xabre

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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.

FanEagle

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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.

timerland

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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.

Baofeng

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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.

AjithBtc

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Quote from: Sithara007 on June 18, 2019, 11:39:10 PM

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.

royalfestus

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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.

Naida_BR

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Quote from: GabrielleGGG on June 18, 2019, 04:13:44 PM

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

Indamuck

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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.

mu_enrico

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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

jademaxsuy

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Quote from: Sithara007 on June 18, 2019, 11:39:10 PM

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.

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