Anthropic IPO hits headwinds, weighing on the AI sector
New York City Comptroller Levine wrote to Anthropic CEO, calling on the company to pause its IPO and first explain its AI safety governance. The public pension funds under his oversight total $325 billion. Anthropic had planned to go public as early as next month, with Q3 revenue of $16.8 billion and a fundraising target benchmarked against SpaceX’s record. The company has not yet responded.
When the primary-market pricing window gets pushed back, the valuation anchor for AI narrative tokens starts to loosen. These assets rely on the model narrative to support their market caps, but have no real cash flows to back them up. Market makers’ order-book depth is already thin, so once buyers pull back, a retest of the previous high-volume trading zone is more likely than a breakout. In times like this, capital tends to take shelter in areas supported by spot ETF inflows and deep futures open interest. They may hold up relatively well in the short term, but don’t expect the AI sector to rally on its own.
If you’re holding AI-sector tokens, what’s your cost basis—and are you willing to ride out this downturn until the next narrative catalyst?
$TAO $BTC $ETH
New York City Comptroller Levine wrote to Anthropic CEO, calling on the company to pause its IPO and first explain its AI safety governance. The public pension funds under his oversight total $325 billion. Anthropic had planned to go public as early as next month, with Q3 revenue of $16.8 billion and a fundraising target benchmarked against SpaceX’s record. The company has not yet responded.
When the primary-market pricing window gets pushed back, the valuation anchor for AI narrative tokens starts to loosen. These assets rely on the model narrative to support their market caps, but have no real cash flows to back them up. Market makers’ order-book depth is already thin, so once buyers pull back, a retest of the previous high-volume trading zone is more likely than a breakout. In times like this, capital tends to take shelter in areas supported by spot ETF inflows and deep futures open interest. They may hold up relatively well in the short term, but don’t expect the AI sector to rally on its own.
If you’re holding AI-sector tokens, what’s your cost basis—and are you willing to ride out this downturn until the next narrative catalyst?
$TAO $BTC $ETH