Ripple, the blockchain payment protocol, is reportedly considering an initial public offering (IPO) as its long-standing legal battle with the U.S.
Securities and Exchange Commission (SEC) draws closer to a resolution.
The outcome of this lawsuit could have far-reaching implications for Ripple, its native cryptocurrency XRP, and the broader cryptocurrency market as a whole.
In a recent interview with Digital Perspectives, Linda P. Jones, a seasoned Wall Street veteran with extensive experience, shed light on the potential implications of Ripple going public.
Jones conducted a preliminary analysis to estimate the potential stock value of Ripple and the impact it could have on XRP’s price.
According to Jones, based on data from private investment firm Linqto, Ripple’s current share price is estimated to be $35, valuing the company at approximately $5.7 billion.
However, she pointed out that this valuation seems disproportionately low when considering Ripple’s historical performance and its significant holdings of XRP.
Ripple Contemplates IPO as SEC Lawsuit Approaches Conclusion
The legal battle between Ripple and the U.S.
The Securities and Exchange Commission (SEC) is entering its final stages, and Ripple is reportedly considering an initial public offering (IPO) as a potential outcome.
This development has caught the attention of industry experts and analysts who are speculating on the potential implications for Ripple and its native cryptocurrency, XRP.
Expert Analysis: Assessing the Potential of Ripple’s IPO
Linda P. Jones, a seasoned Wall Street veteran, recently provided her expert analysis on the possible effects of a Ripple IPO.
During an interview with Digital Perspectives, Jones discussed the valuation of Ripple and its significant holdings of XRP.
She highlighted the current share price of Ripple at $35, as determined by private investments firm Linqto, which suggests a valuation of $5.7 billion.
However, Jones pointed out that this valuation seems disproportionately low considering Ripple’s historical performance and the value of its XRP reserves.
Drawing attention to Ripple’s extensive XRP reserves, Jones emphasized that the 42 billion XRP tokens held in escrow are currently valued at $21 billion, assuming a market rate of $0.50 per token.
In her view, this valuation alone exceeds Ripple’s current market value by four times, indicating a significant undervaluation and suggesting that Ripple’s true worth could be considerably higher.
Ripple’s XRP Reserves: A Game-Changer in Valuation
One crucial factor contributing to Ripple’s potential valuation is its extensive XRP reserves.
With 42 billion XRP tokens held in escrow, valued at $21 billion assuming a market rate of $0.50 per token, Jones argued that Ripple’s true worth could be significantly higher than its current market value.
She suggested that this valuation alone exceeds Ripple’s current market value by four times, indicating a significant undervaluation.
The Ripple IPO’s Potential Valuation
Drawing a comparison to Coinbase’s successful IPO, Jones speculated that Ripple’s valuation could reach $107 billion, 20 times its current value, which translates to $600 per share.
Moreover, she projected that if the XRP lawsuit concludes favorably and the token regains its previous high of $3.59, the XRP escrow value could surge to $150 billion, further driving Ripple’s stock price higher.
Jones even expressed her belief in Ripple’s potential to achieve a half-trillion-dollar valuation, citing the successes of companies like Nvidia and Apple.
Ripple’s Desire to Go Public and Recent Developments
Ripple has previously expressed its intention to go public, with CEO Brad Garlinghouse stating in May 2022 that an IPO would be explored once the SEC lawsuit reaches its conclusion.
Recent updates from Garlinghouse indicate his belief that the case could conclude in a matter of weeks.
Additionally, reports suggest that Ripple conducted a successful private “roadshow” in April, meeting with potential investors and garnering strong interest from respected institutional investment firms on Wall Street.
The Implications of a Ripple Victory and XRP’s Milestone
As the SEC lawsuit against Ripple nears its end, a favorable outcome for Ripple could have significant implications for the company and the broader cryptocurrency market.
Not only could it pave the way for Ripple to go public, increasing its visibility and popularity, but it could also have a positive impact on the value of XRP.
Many investors and enthusiasts hope that a Ripple victory would propel XRP to reach the long-awaited milestone of $10, marking a significant turning point for the cryptocurrency.
In conclusion, Ripple’s contemplation of an IPO as the SEC lawsuit approaches its conclusion has generated excitement and speculation within the cryptocurrency community.
The potential valuation of Ripple, coupled with the value of its XRP reserves, has led experts to consider the implications of a successful IPO for Ripple and the future of XRP.
As the legal battle draws to a close, the outcome could set the stage for Ripple’s next chapter and potentially shape the trajectory of the cryptocurrency market as a whole.