- Ripple’s steady increase in valuation and strategic financial decisions signal unwavering support for XRP.
- Legal expert John Deaton dismisses any notion of Ripple abandoning XRP, citing the company’s substantial holdings and recent legal clarifications.
Unwavering Commitment in Numbers
Ripple‘s journey from its initial valuation of $128 million in 2015 to an astounding $15 billion in 2022 exemplifies its steady path of growth and its unshakeable commitment to XRP. Legal expert and crypto advocate John Deaton has brought to light this impressive trajectory, painting a picture of dedication and strategic foresight.
As I’ve said for more than 3 years, Ripple is not going to abandon #XRP. It has a fiduciary duty not to.
Do the math:
2015: Series A valuation – $128M
2016: Series B valuation- $410M
2020: Series C valuation- $10B
2022: Series C Buyback valuation – $15B
Last year, Ripple… https://t.co/xnMUqjcQS8
— John E Deaton (@JohnEDeaton1) November 2, 2023
In the wake of positive regulatory news from Dubai, where the Financial Services Authority has approved XRP for use by licensed firms, Deaton stresses Ripple’s strong position. He notes that during the worst crypto bear market to date, Ripple opted for a Series C share buyback at an increased valuation—a move that Deaton interprets as a clear vote of confidence in XRP’s future.
Ripple’s Bold Financial Maneuvers Preceding Legal Milestones
Amidst tumultuous market conditions and regulatory hurdles, including a lawsuit by the SEC alleging illegal fundraising activities through XRP, Ripple’s bold decision to increase its valuation through share buybacks stands out. This strategic move preceded a favorable ruling from Judge Analisa Torres, which stated that XRP’s sale on crypto exchanges did not amount to an unregistered securities offering, further strengthening Ripple’s market position.
Deaton hails Ripple’s CEO, Brad Garlinghouse, as a leading figure in the crypto world, drawing attention to the significantly lower trading valuation of Ripple‘s pre-IPO shares compared to its post-buyback valuation. This discrepancy, according to Deaton, underscores Ripple’s robust financial strategy and its potential impact on XRP’s price.
The Indispensable Value of XRP to Ripple
With Ripple holding between 48 and 50 billion XRP tokens, Deaton argues that it would be irrational for the company to forsake XRP. He presents a simple yet compelling calculation: should XRP reach $2 per token, Ripple’s holdings would balloon to an approximate value of $100 billion, clearly illustrating the economic impracticality of abandoning such an asset.
In conclusion, the legal expert’s analysis and the positive price trends of XRP on the charts suggest a secure future for the token, buoyed by Ripple’s strong financial standing and recent legal victories. The continued bullish formation of XRP, even within the confinements of a previous trading range, indicates a potential for retesting past highs and reaching the coveted $1 mark.
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