- Ripple, in its final stages of a legal battle with the SEC, is considering an IPO, potentially raising its valuation exponentially.
- Ripple’s estimated worth could be significantly higher than its current valuation, considering its massive escrow holdings of XRP, according to industry expert Linda P. Jones.
As the legal standoff between Ripple, the renowned blockchain firm, and the U.S. Securities and Exchange Commission (SEC) inches towards closure, whispers of a possible initial public offering (IPO) for Ripple are growing louder. Linda P. Jones, a veteran of the industry, has cast her analytical lens over the prospects of a Ripple IPO, revealing the potential ramifications on the company’s valuation and the level of investor interest.
Assessing Ripple’s True Worth
Ripple’s present share price is estimated to be around $35, according to data from private investment enterprise Linqto, leading to a projected valuation of $5.7 billion. But Jones underlines a disparity between this figure and Ripple’s vast reserves of XRP tokens. Ripple’s 42 billion XRP tokens in escrow, currently worth $21 billion, indicate a significant underestimation of the company’s value. Ripple’s actual worth, Jones posits, could well be as high as $107 billion, a substantial leap from the current estimate and equivalent to 20 times the present value.
Jones draws parallels between Ripple’s potential trajectory and Coinbase’s successful IPO, suggesting that a favorable conclusion to the XRP lawsuit could see Ripple’s stock price soar, especially if XRP reclaims its previous peak of $3.59. In such a scenario, Ripple’s escrow holdings could swell to $150 billion, further propelling the stock price. Jones even envisions Ripple reaching a valuation akin to tech giants like Nvidia and Apple, suggesting a potential half-trillion-dollar worth.
Road to the IPO: Ripple’s Strategic Moves
Ripple held a private roadshow in April, courting major Wall Street institutional investors, perceived as a strategic attempt to assess investor sentiment in the run-up to a possible IPO. While not an immediate IPO announcement, it underscores Ripple’s tactical planning and preparation for momentous developments on the horizon.
Ripple’s CEO, Brad Garlinghouse, had indicated in 2022 the company’s intention to explore an IPO after the SEC legalities were resolved. Recent positive shifts in the XRP lawsuit, such as the court’s refusal to seal documents linked to the Hinman speech, have fueled optimism about Ripple’s outlook.
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These developments have been met with a favorable market response, with the XRP price jumping more than 37% in the past month, trading around $0.51 on average, signaling investor faith in Ripple’s promising future.
A victory in the lawsuit could have profound implications for Ripple and the broader cryptocurrency market. It could pave the way for Ripple’s public debut, enhancing its popularity and potentially catapulting XRP’s value towards the long-anticipated $10 mark.
With the legal drama drawing to a close, Ripple’s fight against the SEC and its potential IPO continue to be focal points for observers, further enlivening the future of the cryptocurrency industry.
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