Pre-IPO Markets Show **Remarkable** Resilience Despite Linqto Bankruptcy: Crypto’s **Unstoppable** Ascent in Q2 2025

The recent news of the Linqto bankruptcy might have sparked concern among investors, particularly those with stakes in private companies. However, for the broader landscape of pre-IPO markets, the message from industry leaders is clear: stability prevails. This article delves into why one major player’s challenge is not a systemic threat, and how crypto investments, including those involving giants like Ripple, continue to thrive, according to insights from EquityZen.

Understanding the Linqto Bankruptcy and Its Limited Impact

On Monday, Linqto, a private investment marketplace, filed for Chapter 11 bankruptcy. This development naturally raised questions, especially given Linqto’s reported holding of 4.7 million secondary shares of Ripple. Linqto previously offered users the opportunity to invest in private companies, such as Ripple, before their potential public listings. However, leading secondary trading platform EquityZen has moved swiftly to reassure investors that this event will have no significant impact on the wider pre-initial public offering (IPO) markets.

EquityZen co-founder and CEO Atish Davda confirmed, “Linqto’s bankruptcy has absolutely no bearing on EquityZen’s business or clients.” He added, “We can confidently confirm that investments made on EquityZen’s platform have no exposure to Linqto.” This clear statement underscores the compartmentalized nature of the pre-IPO market, where the challenges of one platform do not necessarily ripple across the entire ecosystem.

Navigating the Pre-IPO Markets: What You Need to Know

For those new to the concept, the pre-IPO market refers to the trading of shares in private companies before they go public on traditional stock exchanges. Unlike a traditional IPO where companies like Circle sell shares directly to the public, the pre-IPO space allows investors to gain early exposure to promising unlisted companies, such as Ripple, anticipating future growth and public listing.

Recent data from EquityZen paints a positive picture of this sector. Investor interest in pre-IPO markets has shown a robust rebound, with a notable 56% surge in June. This marks the highest level of interest since March 2023. While April saw a temporary 38% downturn due to market volatility and risk aversion following US tariff announcements, the recovery was swift, indicating strong underlying demand and a resilient market structure. Private funding rounds have also picked up pace, further fueling this renewed optimism.

Why Crypto Investments Are Surging in Popularity

The cryptocurrency sector has emerged as a significant force within the private investment landscape. According to EquityZen’s Q2 2025 report, crypto ranked as the sixth most popular industry for private investments on its platform. This impressive climb into the top ten reflects a growing institutional and individual appetite for digital assets.

Brianne Lynch, EquityZen’s market insights director, highlighted key drivers behind this surge: “Regulatory tailwinds and broader market adoption coupled with Circle’s hugely successful IPO drove investor interest in stablecoins particularly.” The success of stablecoin issuer Circle’s public offering in early June likely played a crucial role in validating the crypto space for a wider investment audience, making crypto investments increasingly attractive.

While crypto holds a strong position, it’s worth noting the top industries leading EquityZen’s pre-IPO market in Q2 2025:

• Artificial Intelligence (AI)
• Information Technology (IT)
• Fintech
• And then, Crypto, among others.

Ripple’s Prominent Position in Pre-IPO Markets

Among the individual companies drawing significant attention in the pre-IPO space, Ripple stands out. EquityZen’s Q2 2025 insights reveal Ripple as one of the most popular pre-IPO companies on its platform. It shares this elite list with other high-profile entities such as Elon Musk’s space technology company SpaceX and the AI-powered search engine Perplexity.

Remarkably, Ripple was the sole crypto-related company to secure a spot among the top 10 most popular pre-IPO companies, which otherwise largely comprised firms from the space travel, AI, and defense industries. This singular presence underscores Ripple’s unique appeal and strong market position within the evolving digital asset ecosystem, demonstrating continued investor confidence in its future trajectory within the pre-IPO markets.

EquityZen’s Insights: Tracking Key Movers in the Crypto Space

While Ripple was the only crypto company in the top 10 overall, other crypto firms demonstrated significant momentum. EquityZen identified stablecoin issuer Tether and crypto exchange Gemini as the biggest quarterly movers in Q2 2025. This indicates a dynamic environment where investor interest can rapidly shift towards promising projects and companies within the crypto sphere.

The differing strategies of these two major players are also noteworthy. Despite issuing USDt (USDT), the largest stablecoin by market capitalization, Tether has consistently rejected the idea of an IPO. This contrasts sharply with its primary competitor, Circle, which successfully went public. Meanwhile, Gemini has taken steps towards a public listing, announcing its submission of a confidential IPO with the US Securities and Exchange Commission on June 6. These diverse approaches highlight the varied paths crypto firms are taking to engage with traditional financial markets, further solidifying the landscape for crypto investments.

Conclusion: A Resilient Future for Crypto in Pre-IPO Markets

The news of the Linqto bankruptcy, while significant for its direct stakeholders, has been confidently positioned by EquityZen as an isolated incident with no systemic threat to the broader pre-IPO markets. Instead, the narrative points towards a vibrant and recovering investment landscape, where interest in private companies is soaring. The cryptocurrency sector, propelled by regulatory clarity and successful public listings like Circle’s, is clearly a major beneficiary of this renewed enthusiasm.

With Ripple cementing its place among the most sought-after pre-IPO companies and other key players like Tether and Gemini showing strong quarterly growth, the outlook for crypto investments in the private market remains exceptionally positive. This demonstrates not just a passing trend, but a sustained maturation of the digital asset industry, increasingly integrated into the mainstream financial ecosystem and offering compelling opportunities for discerning investors.