The IPO market in 2025 has just heard the "warming" signal, but it has quickly delivered a harsh wake-up call to 21 newly minted billionaires—these founders whose net worth skyrocketed past $1 billion on their first day of listing have seen their wealth evaporate by 23% in the blink of an eye. What is really behind this phenomenon of "overnight wealth and rapid reversal"?

According to the latest data from Bloomberg, the 21 new billionaires who became wealthy through IPOs this year enjoyed a glamorous debut, with their net worth all crossing the $1 billion mark, and media outlets flooding the headlines with tales of "wealth creation myths." But reality is quite brutal—within just a few weeks or even months, these paper fortunes have experienced a rollercoaster ride, with an average decline of 23%. The dream of "one-day billionaire" has faded rather quickly.

As someone who has long observed the capital markets, I want to say: this is not a coincidence at all, but a replay of the old trick of "primary market frenzy and secondary market dumping." Even more glaring is that this phenomenon is almost a twin brother to the crypto scene's "projects reaching peak upon launch."

In essence, whether it’s an IPO or a token listing, early valuations of new assets are inevitably inflated. On the IPO side, it’s the underwriters’ premium packaging; on the crypto side, it’s the valuation overreach after private funding rounds. Both are essentially about front-running future growth potential and turning it into today’s price. Once market sentiment shifts, and without solid fundamentals and real use cases to support, valuations can only be corrected downward—from bubble peaks to more rational levels. This process is often swift and brutal.

The key to avoiding pitfalls is not to be fooled by the hype on the first day. Truly valuable assets should be judged by their underlying business logic and long-term growth potential, not by short-term market heat.