Why Are Some Comparing RVI to the ICO Era?

[johnblockbuster]

Is RVI the same as an ICO?
No. RVI is an SEC-registered, exchange-listed closed-end fund operating under established securities laws. It is structurally very different from unregulated token offerings.

Why the comparison then?
The comparison stems from similarities in access and valuation dynamics. During the ICO boom (2017–2021), retail investors gained early exposure to high-growth ventures, often based on forward-looking narratives rather than stable valuation frameworks.

What are the valuation concerns?
Private companies are not priced continuously like public stocks. Their valuations are typically set during funding rounds, which may not fully reflect current market conditions. This creates uncertainty around the true value of underlying holdings.

What additional risks exist?
As a closed-end fund, RVI shares trade on the open market and can rise above or fall below the fund’s net asset value (NAV). Investors therefore face two risks: fluctuations in the value of private companies and fluctuations in the fund’s market price.

[madmax]

ipo at 25 and watch it trade at 30 or 18 depending on vibes

[JanEmil]

I liked ICOs more. We lost many but got a few runners.