The IPO Beauty Pageant

It's the monetary policy that will impact crypto

2019 will be the year of IPOs. Here is a rundown of some of the top ones to get excited about as quoted from Investor PlaceAs a special golden nugget, please read the bottom for the insight on how this will impact the crypto markets

Uber

“Uber’s rumored $120 billion IPO valuation may drop some jaws, it’s worth it.”

Lyft goes public tomorrow

“The attractive thing about the Lyft IPO is that the valuation is rumored to be under $25 billion. That is just a fraction of Uber’s valuation. To be sure, Uber is much bigger than Lyft in terms of total revenues and rides. But, Lyft is supposedly growing much more quickly than Uber, and the company has largely avoided negative press (much unlike Uber)”. According to eToro on Twitter, Lyft is going public tomorrow.

Airbnb

“Much unlike Uber, however, Airbnb doesn’t have any big second competitor that is also set to IPO in 2019. Thus, the competition landscape for Airbnb is quite attractive for the foreseeable future.” 

Postmates

“Postmates is maintaining steady double-digit market share. Plus, the current valuation on Postmates is reasonable ($1.85 billion).”

Pinterest

“Snap struggled for three reasons. The user base fell flat, engagement proved difficult to monetize, and margins were weak. Pinterest won’t have those problems. The platform has about 250 million monthly active users, and is growing that base at a fairly consistent 50 million new users per year. Pinterest filed for IPO at the end of last week, seeking a valuation of at least $12 billion.”

Slack

“Slack is the fastest growing software-as-a-service (SaaS) company ever. Going forward, there are two important things to note here. One, demand in the ESN space will only continue to grow. Two, Slack has beaten out competition from Facebook (NASDAQ:FB) in this space.”

CASPER

According to Marketwatch, the mattress company is seeking underwriters for their upcoming IPO at a valuation of $920Million. Some prominent investors are Target & 50 cent.

Now for the CRYPTO golden nugget ….

Arthur Haye’s from Bitmex had some great commentary on his coined “IPO beauty pageant”. He thinks that some recovery signs “green shoots” will occur later in the year. Blocktribune also quotes the following verbatim.

“The 2019 chop will be intense, but the markets will claw back to $10,000,” he said. “That is a very significant psychological barrier. It’s a nice round sexy number. $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.”

According to Hayes & Blocktribune’s coverage, monetary policy will play a huge role in bitcoin’s return to $10,000.

“But things are a changin’. The Fed couldn’t stomach a 20% correction in the SPX. In the recent Fed minutes, the dot plot now shows now rate increases for the rest of 2019,” he said. “The Fed will start reinvesting its runoff in the third quarter. We are only a hop, skip, and a jump away from an expanding Fed balance sheet.”

Hayes also said that “2019 will feature an IPO beauty pageant of some of the best cash destroying businesses. Uber, Lyft, AirBnB, and possibly the We company all are rumored to IPO this year.” He believes that these will precede a boom in crypto markets.

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