Analyst Downgrades Crypto’s Most-Subscribed IPO as Stock Sinks

What was once one of the most hyped crypto-related IPOs is now facing a reality check. A leading analyst has downgraded the stock after its share price slid sharply, signaling growing doubts about valuation, growth expectations, and near-term fundamentals.

The downgrade comes as enthusiasm that drove massive oversubscription during the IPO begins to fade. Early investors were betting on strong post-listing momentum, rapid revenue growth, and sustained demand from institutions eager for regulated crypto exposure. Instead, the stock has struggled to hold its debut levels, weighed down by broader crypto market volatility and a more cautious macro environment.

According to the analyst, the core issue isn’t the company’s long-term vision but its current pricing. The IPO valued the business as if growth would remain uninterrupted, leaving little room for execution risk or market downturns. As crypto trading volumes softened and risk appetite cooled, those expectations started to look stretched.

There are also concerns about profitability timelines. While the company continues to expand products and services, rising costs and competitive pressure may delay meaningful margin improvement.

For investors, the downgrade is a reminder that even the most popular crypto IPOs are not immune to market cycles. Strong branding and early demand don’t always translate into sustained stock performance—especially when valuations run ahead of fundamentals.