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Web3 firm Stripe goes public: will it overcome poor crypto stock trends?

Winnie Kimeu

Writer, News

Jan 30, 2023 at 03:28

A tech giant regarded as one of Silicon Valley’s most prized startups is marching towards a much-anticipated initial public offering.

The executives at Stripe have charted a course toward either a public offering or private-market share sales for the company within the next year.

“A Stripe stock-market listing could help revive an initial public offering market that went dormant in 2022.” Wall Street Journal

COIN/USD Chart by TradingView
COIN/USD Chart by TradingView

Despite its success, Stripe has faced challenges in the past year, including layoffs that affected 14% of its workforce in November 2022. Taking part in the growing trend of tech companies reducing their workforce.

State of the stocks

In 2022, crypto and tech stocks faced a rough ride as recession concerns and a bleak economic outlook dampened enthusiasm for high-risk investments.

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Another notable player in the space, Coinbase, saw its stock (COIN) sink to new lows, plummeting to $33 at the end of the year. A 90% drop from its peak and a bigger decline than even Bitcoin during the bear market.

Buy - sell - buy it again - Stock Market norms
Buy – sell – buy it again – Stock Market norms

Additionally, mining companies, including Riot Blockchain, Marathon Digital, Hive, Hut8, and Bitfarms, faced stock declines. While a resurgence of crypto stocks has lifted them off their lows, many are still far from their peak values.

With a shift in the economic landscape and a revival of the crypto markets, 2023 may offer potential buying opportunities for crypto stocks.

Worth monitoring are Coinbase (COIN), Block Inc. (SQ), PayPal (PYPL), MicroStrategy (MSTR), Marathon Digital (MARA), and Silvergate Capital (SI).

Bitcoin halving expectations

Web3 firms with a footprint in the crypto space could see stock gains in the coming months, as crypto markets tend to follow cyclical patterns, especially around Bitcoin halvings.

Bitcoin Halving
Bitcoin Halving

The next Bitcoin halving is slated for May 2024, and past cycles have seen a significant bull run afterward. Moreover, as crypto markets recover, crypto stocks are also poised to follow suit, riding the wave of market growth.

Finally, the crypto markets are currently in an upward trend, rising 2.2% and boasting a total market valuation of more than $1.1 trillion.

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