Rule Du Jour: Rule #49 - Never buy IPOs (Patreon)

Never buy IPOs:

Empirical data shows that 50–70% of IPOs underperform their offering price or the market within 6–12 months of launch.

Initial hype often leads to overvaluation, followed by reality checks, unlocks, insider selling, and profit-taking. There is also huge lack of transparency when they launch.

If you really must buy an IPO, wait for the dust to settle and valuation to normalize before considering investment.

EXAMPLES:

• #Coinbase was a classic example of this... I made 2 videos ahead of IPO warning not to buy - it opened at $400 4 yrs ago and fell to $32. Now 4 years later and Coinbase still 40% under IPO price! Now you know why the insiders sell.

• FOLD $FLD the new hot Bitcoin only IPO that was pumped to high heaven, well that is now down 40% in 3 days. FOLD has been around a while they they repositioned themselves - technically speaking the market called it an IPO - in reality Fold Holdings, Inc.’s ($FLD) IPO was a public listing via a SPAC merger that occurred this week, specifically on February 19, 2025.

  PS I also added FOLD to our HODL MODEL and u can see the NAV PREMIUM is nearly 4x the BTC HODL (assuming the BTC HODL is what they said it was pre IPO!)