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Another Web3 Firm Goes Public But History Shows Crypto Stocks Underperform

Stripe, the payments company, is getting closer to an IPO. It does, however, come at a time when the IT and cryptocurrency markets are in a severe bear market.

The Wall Street Journal stated on January 26 that “one of Silicon Valley’s most valued businesses” is getting closer to a massive public-market debut.

Stripe management intends to either go public or let workers sell shares in private-market transactions over the next 12 months, according to the article. Furthermore, according to the WSJ:

“A Stripe stock-market listing might help revive an IPO market that went inactive in 2022.”

Stripe, on the other hand, has not evaded the bears in the last year. In November, the corporation laid off 14% of its workers, adding to a long line of layoffs in the IT sector.

Crypto stocks, like other tech equities, were pummeled in 2022. Fears of a recession and a bleak macroeconomic outlook put a damper on high-risk ventures.

Several Bitcoin mining businesses have gone public, and their prices have taken a beating. Other well-known businesses, such as Coinbase, saw their shares (COIN) fall to an all-time low. At the end of last year, coin values fell as low as $33. This reflects a 90% drop from its all-time high, which is more than Bitcoin has dropped throughout this bear market.

Riot Blockchain, Marathon Digital, Hive, Hut8, and Bitfarms all had their stock prices fall in 2022. Furthermore, many have just recovered from their lows, but many are still far below their peak values.

In 20213, when the macroeconomic narrative shifts and crypto markets recover, there may be opportunities to acquire crypto equities.

Coinbase (COIN), Block Inc. (SQ), PayPal (PYPL), MicroStrategy (MSTR), Marathon Digital (MARA), and Silvergate Capital are a few to keep an eye on (SI).

Stocks in any Web3 firm that is also interested in bitcoin might skyrocket later this year. Cryptocurrency prices are cyclical and historically have shifted in response to Bitcoin halving occurrences.

The next BTC halving is scheduled for May 2024, and prior cycles have seen a significant bull run. This is also good news for crypto stocks, which will rise when markets recover.

At the time of writing, cryptocurrency markets were up 2.2% on the day, with a total market value of little more than $1.1 trillion.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.