According to EquityZen, the bankruptcy of Linqto, a private investment market holding 4.7 million shares of Ripple's secondary stock, will not impact the broader initial public offering (IPO) market.
Linqto filed for bankruptcy protection on Monday (July 7), raising concerns among investors about the state of private investments. The company previously allowed users to invest in private companies like Ripple before a potential public listing.
EquityZen stated that Linqto's bankruptcy does not affect other companies in the pre-IPO market. EquityZen is one of the largest secondary trading platforms for private stocks.
“The bankruptcy of Linqto has absolutely no impact on EquityZen's business or clients,” said Atish Davda, co-founder and CEO of EquityZen, in an interview with Cointelegraph.
“We can confidently confirm that investments made on the EquityZen platform are not exposed to Linqto,” Davda added.
In traditional IPOs, companies like Circle sell shares of their business to the public to list on stock exchanges such as the New York Stock Exchange.
Since some companies have yet to advance their IPO plans and go public, there exists a pre-IPO market, referring to investments in unlisted stocks of companies like Ripple.
According to EquityZen, interest in pre-IPO investments has rebounded in recent months, with investor interest rising by 56% in June, reaching its highest level since March 2023.
This surge in interest followed a significant 38% drop in April due to market volatility and risk-averse sentiment caused by U.S. tariff announcements. However, this decline was short-lived as the market warmed up and private financing rounds increased.
EquityZen reported that in the second quarter of 2025, the cryptocurrency industry was the sixth most popular sector for private investments on its platform.
“Cryptocurrency became one of the top ten industries in the second quarter. Regulatory tailwinds and broader market adoption, along with Circle's successful IPO, drove investor interest in stablecoins,” reported Brianne Lynch, EquityZen's Director of Market Insights, in an update on Monday.
Artificial intelligence led EquityZen's pre-IPO market in the second quarter, followed by sectors such as information technology and fintech.
According to EquityZen's insights, Ripple was one of the most popular pre-IPO markets on the platform in the second quarter, alongside Elon Musk's space technology company SpaceX and the AI-driven search engine Perplexity.
Among the top ten companies, most were involved in space travel, artificial intelligence, and defense, with Ripple being the only cryptocurrency-related company on the list.
Despite only Ripple being a cryptocurrency-related business among the top ten, other crypto companies also showed strong momentum.
Stablecoin issuer Tether and cryptocurrency exchange Gemini were the biggest quarterly movers on EquityZen in the second quarter.
Despite issuing the largest market cap stablecoin USDt (USDT), Tether has repeatedly rejected IPOs, even as its biggest competitor Circle went public in early June.
Additionally, Gemini has advanced its IPO plans and announced on June 6 that it submitted a confidential IPO application to the U.S. Securities and Exchange Commission.
Related: NFT sales reached $2.8 billion in the first half of 2025, while trading volume saw a significant decline.
Original article: “EquityZen Says Linqto Bankruptcy Poses No Threat to Pre-IPO Markets”
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