- Anticipated settlement between Ripple and the SEC could pave the way for an IPO, igniting a fresh valuation surge for Ripple.
- Rumored private discussions with reputable institutional investment firms, hinting at a stock price elevation to $600 per share post-IPO.
As the horizon seems to brighten for Ripple with an expected settlement with the U.S. Securities and Exchange Commission (SEC), the market is abuzz with discussions around a forthcoming Initial Public Offering (IPO). Speculations fueled further post a tweet suggesting Ripple’s private roadshow event back in April 2023, where Wall Street honchos reportedly showed keen interest in the blockchain firm’s IPO endeavor.
This is it! The last batch of tickets for The Proper Party are now available!
Check out the FAQs for details including ID requirements and more.
— Ripple (@Ripple) September 21, 2023
The SEC Lawsuit Ripple Effect
The ongoing lawsuit by the SEC has been a cloud over Ripple, leading to a tarnished image and several exchanges delisting its native XRP token. Consequently, the investors’ interest dwindled significantly, underperforming when juxtaposed with other altcoins in the crypto bazaar. Yet, a favorable judgment in this lawsuit could very well be the silver lining Ripple needs to regain its former glory and more.
Attorney John Deaton’s remarks highlight the potential uplift Ripple could experience post-lawsuit, mentioning,
“If @Ripple wins the SEC lawsuit or gets the functional equivalent of a slap on the wrist, along with a ruling that ongoing and future sales of #XRP are not securities, the lawsuit will prove a blessing in disguise for Ripple.”
IPO: A Game Changer?
Wall Street veteran, Linda P. Jones, illuminates the enticing possibilities that lie ahead if an IPO materializes post a decisive legal ruling. The pivotal point of the discussion orbits around Ripple’s monumental XRP reserves, 42 billion XRP tokens valued at a whopping $21 billion, overshadowing Ripple’s current market valuation by fourfold. This disparity underlines the significant undervaluation presently endured by the company.
By leveraging data from Linqto, Jones elaborated on the potential stock value, drawing parallels with the triumph of Coinbase’s IPO, which propelled its valuation to $86 billion momentarily. If Ripple mirrors this success, factoring in its hefty XRP reserves, the combined valuation could escalate to an astounding $107 billion, a stark contrast to its current standing. Moreover, a resurgence in XRP price to its historical high could nudge the valuation further to $126 billion.
Jones’s conjecture doesn’t stop here; she brings in the narrative of tech titans like Nvidia, Apple, and Amazon, whose valuations have soared to trillions and billions, underscoring the conceivable reality where Ripple could ride the IPO wave to a half-trillion-dollar valuation. This hypothesis paints a lucrative picture for potential investors, with a 20-fold increase being a persuasive incentive.
Through a prism of meticulous analysis and the dangling carrot of a lucrative IPO, Ripple’s odyssey in the financial cosmos is one watched with bated breath by investors and crypto-enthusiasts alike.