Crypto influencer, Crypto Eri, has issued a cautionary note on Twitter about the potential initial public offering (IPO) of blockchain payment protocol company, Ripple. The warning came on Sunday, November 5, 2023, drawing comparisons with similar firms such as Nium and Tranglo, both of which have recently delayed their own IPOs.
Nium, despite launching Global FX, hinted at a delay in its IPO until the second quarter of 2025. Similarly, Tranglo postponed its public listing by six months, resulting in a 23% loss in trust cash.
Crypto Eri contrasted these circumstances with the recent disappointing IPO of Nubank, a fintech company backed by Warren Buffett. Nubank's share price plummeted 23% following its token launch. This sentiment was supported by a study indicating a 60% value crash in the largest IPOs of 2021.
In their tweet, Crypto Eri suggested that improved market conditions might encourage private unicorns like Ripple to go public. However, they also referenced a statement from Ripple's CEO indicating that an early 2024 IPO would be impractical.
To accurately value companies planning for an IPO, Crypto Eri provided a checklist that includes factors such as cash balance, debt, and the value of the investment portfolio. This comes as a valuable tool for investors amidst the current turbulent market conditions.
The recent trend of delayed and depreciating IPOs raises questions about the viability of upcoming public listings for companies operating within the crypto and fintech sectors. With Ripple's potential IPO under scrutiny, it remains to be seen how the company will navigate these choppy waters.
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