Why Solana Wallet Phantom Isn’t Following Rivals to the Stock Market

Core Insights - Phantom, a Solana-based crypto wallet, has decided against going public, launching a token, or building its own blockchain, focusing instead on product development and investment in Solana [3][4][5] - The company has over 7 million monthly active users and has attracted significant private funding from major investors like Paradigm, a16z, and Sequoia Capital [1][3] - The decision to remain private reflects a broader trend among crypto startups prioritizing sustainable revenue and product focus over the pressures of public market volatility and quarterly earnings [8][9][10] Company Strategy - Phantom's CEO, Brandon Millman, emphasized that the company will stay private "for as long as it makes sense," indicating a strategic choice to avoid the burdens of public market compliance [3][4] - The company has assessed the costs and benefits of public listing, concluding that it can meet its funding needs through private capital [4][9] - Millman also dismissed the idea of launching a token, citing the responsibilities and market risks associated with token issuance [5][6] Market Context - The crypto market has seen a shift with companies like Circle and Kraken going public, while Phantom opts to remain private, highlighting a divergence in strategies within the industry [2][3] - Analysts note that Phantom's revenue is closely tied to Solana's performance, with a 97% correlation to Solana's total app revenue, indicating both a strength and a risk in its business model [7] - The current market environment rewards predictable cash flows, making the decision to stay private more appealing for companies focused on long-term sustainability [9][10] Industry Trends - The trend of crypto companies staying private reflects a maturation of the industry, moving away from hype-driven growth towards sustainable business practices [8][10] - Regulatory uncertainty in the U.S. adds to the complexity of going public, with companies preferring to avoid rigid compliance frameworks that could stifle innovation [9] - The dual-path model of integrating an IPO with a token remains largely untested, indicating that many firms are still exploring new business structures [6]