Crypto influencer, Crypto Eri, took to Twitter to issue a warning about the potential initial public offering (IPO) of blockchain payment protocol company, Ripple. The warning came on Sunday, November 5, 2023, and drew comparisons to similar companies such as Nium and Tranglo, both of which have recently delayed their own IPOs.
Nium, despite launching Global FX, hinted at delaying its IPO until the second quarter of 2025. Similarly, Tranglo postponed its IPO by six months, resulting in a 23% loss of trust funds.
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% after its token launch. This sentiment was supported by a study that showed a 60% value crash for the largest IPOs of 2021.
In their tweet, Crypto Eri suggested that improved market conditions could 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.
In order to accurately value companies planning an IPO, Crypto Eri provided a checklist that includes factors such as cash on hand, debt, and the value of the investment portfolio. This is a valuable tool for investors in the current turbulent market conditions.
The recent trend of delayed and devalued IPOs raises questions about the viability of upcoming IPOs for crypto and fintech companies. With Ripple’s potential IPO under scrutiny, it remains to be seen how the company will navigate these choppy waters.
