Burger Flippening: DoorDash IPO Instantly Exceeds Ethereum Market Cap
It is “IPO season” in the stock market, and among the companies going public for the first time, is food-delivery firm DoorDash. In its stock market debut, the individual share price brought the total market cap above the entire Ethereum market cap instantly.
One analyst calls DoorDash’s debut the “the most ridiculous IPO of 2020,” holding “no value.” While that is debatable, the fact that it immediately surpassed years of adoption in a breakthrough financial network that could disrupt and support the entire financial system in the future, is indeed “ridiculous.” Here’s a detailed look at DoorDash’s stock market introduction and more reasons why it could also show just how undervalued the top-ranked altcoin is currently.
IPO Season: DoorDash Goes Public To Capitalize On Peak Stock Market Exuberance
With everyone stuck at home, and restaurants either forced to shut down, limit seating, or having gone out of business, few businesses have benefitted from the pandemic as much as DoorDash has.
The budding food delivery firm relies on delivery drivers in the same vein as Uber, who pick up food from local establishments and deliver it to DoorDash’s customer’s doorsteps.
Related Reading | Here’s What Will Happen To Ethereum Once Bitcoin Breaks $20,000
Yesterday’s stock market debut propelled the share price upward by 86% over its initial IPO price, taking the total market cap to $72 billion.
David Trainer, CEO of market research firm New Constructs, who finger pointed WeWork for the disaster it was last year, says DoorDash is “the most ridiculous IPO of 2020.”
Trainer cites stiff competition, a lack of established revenue-driving, and says the current pandemic-driven demand could wane.
“This is Silicon Valley selling public markets an asset at a huge premium, and they’re going to laugh all the way to the bank, and I think a lot of individual investors rushing into this are going to lose a lot of money,” he explained.
The DoorDash stock share price chart looks strange with only two days trading | Source: NYSE-DASH on TradingView.com
Why The “Ridiculous” Debut Demonstrates That Ethereum Is Massively Undervalued
The DoorDash stock market debut puts its market cap at $72 billion, taking it above Ethereum’s $63 billion and rapidly declining market cap. Analysts believe it could eventually reach $1 trillion.
The second most dominant crypto network was recently valued slightly higher than $72 billion itself but has since pulled back considerably.
But so has DoorDash, putting the two assets closely on par moving forward. And few comparisons do such a bang-up job of proving why the initial DoorDash valuation is so “ridiculous.”
At its debut, the DoorDash IPO was valued higher than the entire Ethereum network | Source: CRYPTOCAP-ETH on TradingView.com
DoorDash has very little profit margins currently, due to it still being in the building stage. Ethereum, today is a powerful distributed ledger network capable of deploying decentralized finance apps, smart contracts, and just about anything else Wall Street can cook up.
Related Reading | How Ethereum Is Poised To Replace Wall Street’s Archaic Back End
Ethereum’s potential to transform the future of business, finance, and some of the systems most critical to any industry should give it a market cap significantly higher than an alternative way to get food delivery, which has existed for as long as people have been eating at restaurants.
What is happening instead, is that investors are being fed low-value promises in exchange for capital that simply isn’t comparable. But regardless, investors seem to be eating it up, leaving little appetite behind for real-value assets like Ethereum and the future of DeFi.
Featured image from Deposit Photos, Charts from TradingView.com
OhNoCrypto
via https://www.ohnocrypto.com
Tony Spilotro, @KhareemSudlow