Investor Mark Cuban is drawing parallels between the initial public offerings of several companies in recent months and “meme coins” such as Dogecoin and the TRUMP coin, among others.
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IPOs Turned Into ‘Meme Coins’
On Tuesday, in a post on X, Cuban asked his followers whether every IPO would be treated like a “meme coin” going forward.
While he fails to elaborate further, Cuban’s comments are likely referring to recent public offerings of companies such as Bullish BLSH, Circle Internet Group Inc. CRCL and Figma Inc. FIG, which have experienced significant volatility since making their debut on the bourses.
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Bullish listed on the NYSE 143% above its offer price, before dropping 33.8% the following week, while Circle shares rallied 864% just a few days after listing, but are now down 55% from their all-time high.
Figma, which was listed early this month, returned 333% in just a few short days, but the stock has since dropped 51% from its all-time high in less than two weeks.
According to Cuban, this type of volatility is a characteristic of meme coins, which often have no real business and are pumped and dumped merely on hype and promotions, rather than underlying fundamentals.
A few examples of this include popular meme coins such as Light, Wikicat and Useless Coin, which have posted gains of 378%, 298% and 39% over the past 7 days alone, according to CoinMarketCap.
‘Everything Is A Meme Coin’
Several prominent accounts have since responded to Cuban’s post, with prediction market platform, Polymarket, quipping, “everything is meme coin.”
Another leading prediction market, Kalshi, says that while it doesn’t have answers to Cuban’s question, he can bet on which company is likely to file for a public offering next using its platform. The graphic attached shows Stripe, Anduril, Cerebras and Discord, which currently leads at 46%.
X user, Will.js, an options trader, drew attention to the public offering and listing of Cuban’s first company, Broadcast.com, which he says was “priced in the teens and opened $60,” noting that such gains and volatility when it comes to initial public offerings “isn’t new.”
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