IPO Frenzy Meets Reality: Figure Stock Soars While Klarna, Circle, and Bullish Crash Signal Market Turbulence
Market euphoria hits wall as crypto-linked IPOs show stark divergence.
The IPO Rollercoaster
Figure's stock debut delivered double-digit pops—exactly the kind of momentum crypto bulls love to see. But the celebration got cut short when Klarna, Circle, and Bullish all tanked simultaneously. Turns out public markets still punish companies that can't immediately translate blockchain buzz into actual revenue.
Selective Investor Appetite
Traders aren't buying the 'crypto adjacent' narrative anymore—they want clear monetization paths and real adoption metrics. Figure's compliance-focused approach resonated; the others got labeled as 'vaporware with a ticker symbol.'
Reality Check
Another day, another reminder that Wall Street still runs on profits—not promises. Maybe next time try launching something that actually makes money instead of just making headlines.
Figure stock jumps after IPO
Figure Technologies shares were trading at $32 at press time, down from the intraday high of $36. This followed the company raising $787 million in the closely watched FIGR IPO.
Figure’s IPO is another major win for the cryptocurrency industry. It joins companies such as Circle and Bullish, which have raised millions of dollars this year by going public. Gemini, the crypto exchange owned by the Winklevoss twins, will go public on September 12.
Figure Technology’s Core business is in the home equity lending industry, where it facilitated over $6 billion in loans in the first six months of the year. According to its S1 filing, the company’s revenue for the first six months of the year rose to $190 million from $156 million in 2024. Its revenue in 2024 was $340 million, up from $209 million the previous year.
Most of its revenue came from the gains on the sale of loans followed by interest income and origination fees. Figure is profitable, generating a net income of $29 million in the first six months of the year.
Klarna, Circle, and Bullish stock have crashed after the initial pop
The main risk that the Figure stock faces is that recently, public companies have not sustained their initial gains. Circle stock price has plunged by 56% from its highest point this year.
Bullish, while the stock initially jumped to $117 after the IPO, has plunged by 56% to $53. Klarna’s stock price has crashed from $57 on Wednesday to $43 today.
The same happened among other companies that went public this year, like CoreWeave, eToro, and WeBull. WeBull, a rival to Robinhood, was the most extreme as it jumped from $10 to $80 a few days after it IPO and then plunged to $13 today.
Stocks plunge after IPO as their initial momentum and HYPE eases and as some of the early investors sell. For example, Cathie Wood was one of the top sellers of Circle stock after its stock surged.
Therefore, there is a likelihood that the Figure stock price will crash in the next few days.
