June 5th, circle (Nasdaq: CRCL), the company behind USDC Stablecoin, became public at the New York Stock Exchange (NYSE). The price to $ 31 per share was Circle’s IPO an overwhelming success. At the end of its first day, the shares were closed at $ 82.84, a profit of 167%.
Demand did not end there. On its second day, Circle’s warehouse (CRCL) climbed as high as $ 118.21. On day three (June 9) it reached a maximum of $ 120.96 before he started to cool down; In just the first three days, the Circle shares increased about 256.44%.
It is clear that public markets have a newfound interest in Cryptocurrency companies, and the crypto industry has noted this. With Circle debut that opens the flood gates, many crypto companies seem to be on their way for their own IPO and ride what may be a wave of IPOs in the Cryptocurrency industry that has been started by Circle.
Why are crypto companies apply for IPO now?
If not now, when?
When most people start companies, they dream of reaching a point where the company either generates enough revenue to maintain a sustainable business with respectable wages, or they imagine a liquidity event as an acquisition or public listing that turns their equity in the company into concrete money.
None of the roads is easy. In order for a company to succeed in publishing, the right market conditions and industry winds must set up. When it comes to crypto, we have reached a point where the perfect set of conditions seems to be in place.
The largest, no doubt the most important factor for the Cryptocurrency industry that has given the companies operating within it is a path to liquidity Garling of regulatory.
Promise of clear regulation began on Donald Trump’s campaign track and was later implemented when he entered the White House. Trump has been a crypt -friendly president, not just in words, but in action. This administration has set a new tone for the industry, from launching its own crypto initiatives to signing executive orders and pursuing political changes over important agencies such as Securities and Exchange Commission (Sec).
Some examples of significant changes include SEC that discontinue several long -lasting crypto surveys and formally announces that memecoins are not securitiesLike the StableCoin count (Genius) that works through the White House but provides clearer guidance for Stablecoin issuers.
This change in the regulatory landscape was critical. It triggered a domino effect throughout the industry, which allows banks, traditional financial players, investors and potential business partners to feel more comfortable to get involved with crypto companies without fear of falling out of compliance or meeting prosecution.
At the same time, these traits have increased Crypto’s credibility. When a sitting president and authorities openly support an industry, it signals that space has reached a new level of maturity. Crypto is no longer just a garage experiment run by a handful of developers. It is now in a position where there is increasingly becoming part of the global technology stack.
These factors have created the perfect storm for Cryptocurrency companies, which gives them credibility, regulatory clarity and attention they need to go to the next level, which for some are the public markets.
Crypto companies preparing to publish
Want to ride the momentum created by Circle’s IPO successOther crypto companies have begun to prepare for their own IPO. Gemini, Cryptocurrency exchange Founded by Winklevoss -Tvildingarna has confidential potted Its S-1 registration and signals its intention to publish. Even before Circle’s IPO hit the market, the Trump family’s American Bitcoin Mining Company announced Its plans to publish, a clear signal that the market players are responding to the change in the feeling of crypto listings.
Although these are the companies that have made announcements regarding their intention to list, you can expect that more will follow. Many crypto companies that have been active for several years and have reached a certain level of maturity are probably looking hard if this is the right time for them to publish.
Circle opened the IPO window, and now, with the current market conditions surrounding crypto, including clear regulations, a supportive administration in the government and rising institutional interest, it has become an optimal time for crypto companies to debut in public markets.
Will Crypto IPO shares keep their value over time
To be fair, it probably won’t be smooth sailing for every company that takes this route. Yes, the IPOs will probably happen. The companies that are ready for it will not have trouble finding an insurer and being published. And yes, there will probably be a strong initial demand for shares. But the bigger question is: Will these layers have their value over time?
This moment feels a bit reminiscent of coinbasees (Nasdaq: Coins) Public debut. The company had a good opening day when it IPO, but afterwards the $ coin dropped for several months, and now, four years later, it still has not recycled its initial heights.
Or worse, this new wave of crypto -Stock Exchange can be reminiscent of the spac. In 2021, a wave of companies was announced through reverse mergers with shell companies, but many recently coined public companies have since flounded.
In other words, this may be the beginning of the end; All IPO that is starting to take place can be a top signal, the notion that crypto is approaching a peak that will be followed by an economic origin. Circle has been shopping for less than a week, and the shares are already down about 12%, which potentially confirms that the IPO event is the “top” for many of these companies that want to publish.
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