Ripple is reportedly considering an initial public offering (IPO) as its litigation with the US Securities and Exchange Commission (SEC) nears its conclusion.
During an interview with Digital Perspectives on May 31, Linda P. Jones, a seasoned 25-year Wall Street veteran, hinted at this possibility by providing her expert analysis on the potential impact of a Ripple initial public offering (IPO).
Jones conducted an initial assessment to gauge Ripple’s potential stock value. Using the latest data from private investment firm Linqto, she found Ripple’s current share price at $35, which equates to a valuation of $5.7 billion. Linqto offers interested investors the opportunity to purchase shares before the company goes public as part of an IPO. However, Jones pointed out a disparity in Linqto’s valuation, suggesting that it appears disproportionately low considering Ripple’s historical performance and its significant XRP holdings.
Jones drew attention to Ripple’s extensive XRP reserves, stressing that the 42 billion XRP tokens held in escrow are currently worth $21 billion, based on a market price of $0.50 runs out per token. In their view, this valuation alone exceeds Ripple’s current market value by four times, indicating a significant undervaluation and suggesting that Ripple’s true value could be significantly higher.
The expert also compared Coinbase’s successful IPO and speculated that Ripple’s valuation could reach $107 billion, 20 times its current value, which translates to $600 per share.
In their opinion, if the XRP lawsuit is positive and the token revisits its previous peak of $3.59, the XRP escrow value could rise to $150 billion, potentially boosting Ripple’s share price even further could drift. She also expressed her belief that Ripple has the potential to reach a half-trillion dollar valuation given the successes of companies like Nvidia and Apple.
Ripple has previously expressed a desire to go public. In May 2022, CEO Brad Garlinghouse stated during a conference in Davos that Ripple would explore the possibility of an initial public offering (IPO) once the ongoing legal battle with the US Securities and Exchange Commission (SEC) was resolved. He recently expressed his belief that the case will be closed in a few weeks.
According to Fox Business reporter Eleanor Terrett, the blockchain company reportedly held a successful private “roadshow” in April to meet with potential investors ahead of its IPO. Terrett tweeted Thursday that the event was attended by numerous well-respected Wall Street institutional investment firms, indicating keen interest in Ripple’s offering.
However, as the lawsuit draws to a close, a win for Ripple could have far-reaching implications for the company and the broader cryptocurrency market. This could also allow the company to go public, which could increase its popularity and potentially boost the value of XRP to the long-awaited $10 milestone.
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