A new evaluation of Pinterest is worth $ 12.7 billion – will ICOs soon become IPOs?


Another day, another IPO. The Pinterest social discovery app was made public and its shares were listed at $ 19 each. He sold over $ 1.6 billion worth of shares to several large investors, raising his market capitalization to $ 12.7 billion.

Pinterest is a social media website that allows users to share and pinpoint images found on the web at various forums on the site. Its users – known as pinners events, create albums, share their work and explore their interests.

After its launch in 2010, Pinterest quickly became a hub for infographics, tutorials and tips. Its fair algorithms allow everyone to see their work while guaranteeing their users only truly relevant content. In less than ten years, Pinterest has become the fourth most popular social media site in the world, just behind Facebook, Twitter and LinkedIn, with a predominantly female user base.

At this value, Pinterest is close to Ethereum (ETH), which currently has a market capitalization of just over $ 18 billion. If that breaks down into one per-user evaluation, each of Pinterest's 250 million users brings the company $ 72 worth, while the 1.2 million Ethereum users contribute $ 15,000 each to the company. Ethereum value.


How to compare ICO crypto

Since mid-2014, initial coin offerings (ICO) have become a popular fundraising mechanism for blockchain projects seeking to measure public interest and accelerate the development of their products. . The first of these ICOs occurred in 2013, when Mastercoin (now OMNI) managed to raise $ 500,000.

Today, modern ICOs regularly raise more than $ 10 million, while several projects including Tezos (XTZ), Huobi (HT) and Dragon Coin (DRG) have raised more than $ 200 million. EOS has raised more than US $ 4 billion in its largest offer ever.

With many blockchain projects approaching a respectable size, do you think they are ready to try an IPO? Click to tweet

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Move on the ICO

The average size of ICO funding has dropped significantly since 2017, with projects seeking to raise $ 7 million on average. On the other hand, most IPOs tend to push the company's valuation well in excess of $ 100 million, as Pinterest's IPO is broader.

Unlike IPOs, ICOs do not typically launch with a functional product, but instead use the funds raised to develop the vision of the project normally described in the white paper.

For these reasons, ICOs can generally be considered riskier investments in new and developing companies. IPOs offer investors shares in an already established company and provide a cash injection that can be used for further expansion and development.

At present, several blockchain projects appear to be about to go through the IPO, with the mining giants Bitcoin, Bitmain and Bitfury both expected to go public in 2019.

Beyond this, with many ICO-funded projects receiving considerable support and momentum, it only seems a matter of time before some of these projects are mature enough to consider an IPO. .

Do you think that companies based on block chains could benefit from an IPO? If yes which? Let us know your thoughts in the comments below!

Images courtesy of Shutterstock.

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