BitMEX former CEO Arthur Hayes compared the ICO boom of 2017 with the new wave of crypto IPOs expected between 2025 and 2027, predicting this will be a speculative frenzy where companies like Circle might raise substantial fiat funds, recreating the hype scenes of past crypto bubbles.
He specifically mentioned the 2017 EOS ICO case, which raised $4.1 billion but performed poorly, with its token price dropping over 80% by 2019, serving as a cautionary tale of over-hype in the crypto industry. He warned that the new wave of crypto IPOs might also experience "immediate post-listing crashes".
Historical data has also confirmed these concerns: Coinbase's IPO in 2021 (stock ticker COIN) opened at $381, but dropped 34% within a month, demonstrating the significant volatility and valuation risks crypto-related companies often face after going public.
Risk Warning
Cryptocurrency investments carry high risks, with potentially extreme price volatility, and you may lose your entire principal. Please carefully assess the risks.
