Source: Travis Wolfe
- Ripple IPO talks have peaked as analysts expect a deal with the SEC in the coming months.
- Market experts believe that the company’s valuation could increase twentyfold after the IPO, considering the company’s massive XRP reserves, which currently stand at $21 billion.
When the news that Ripple was close to an agreement with the US Securities and Exchange Commission sparked a new discussion about Ripple planning for an Initial Coin Offering (ICO) very soon after.
The conversation arose after a tweet implied that Ripple held a private roadshow event earlier this year in April 2023. At the time, the blockchain company met with some Wall Street investors who were interested in the company’s IPO.
🚨NEW: In April, @Ripple hosted a private “roadshow” (a marketing event where a company and its underwriters meet with potential investors to generate interest in an IPO). I was told that just about every reputable institutional investment firm on the street took part. https://t.co/fyTzi6pr0W
— Eleanor Terrett (@EleanorTerrett) June 1, 2023
Ripple attorney John Deaton was quick to comment, pointing out that depending on the SEC’s ruling, Ripple could be in a good position. He wrote: “If @Ripple wins the SEC lawsuit, or receives the functional equivalent of a slap on the wrist, along with a ruling affecting current and future sales of #XRP As these are not securities, the lawsuit will prove to be a hidden boon for Ripple.”
The SEC lawsuit has caused major damage to Ripple and its business, as multiple exchanges have delisted Ripple’s native XRP token. As a result, investor interest in Ripple’s XEP cryptocurrency, which has failed to perform at the level of other altcoins in the market since the lawsuit, has declined significantly.
What Could the Potential Outcome of a Ripple IPO Be?
Linda P. Jones, a renowned Wall Street veteran with a 25-year career in the financial industry, provided some insight into the possible outcome of the potential initial public offering (IPO) following a pivotal court decision in the SEC litigation.
In one of her recent interviews, Jones performed a rough calculation to estimate Ripple’s stock value. According to Linqto data, Ripple shares are currently priced at $35, which translates to a whopping $5.7 billion valuation. The Linqto platform allows investors to buy a company’s IPO before it goes public.
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After the jury’s decision, will we see a record-breaking #iPO for #Ripple?
Listen as a 25-year Wall Street veteran talks about what a @Ripple IPO might look like, a 20x valuation = $600+ Ripple stock price? #RETWEET #XRParmy
Photo credit: @LindaPJones pic.twitter.com/Ph7vdoeR0e
— Digital PerspectivesPermaBull (@DigPerspectives) May 31, 2023
Jones highlighted Ripple’s vast XRP reserves of 42 billion XRP tokens held in escrow and currently valued at $21 billion based on the current XRP price of $0.50 . The valuation of XRP tokens is currently four times higher than Ripple’s current market value. This shows that the company is currently significantly undervalued.
To confirm her hypothesis, Jones also drew a comparison to the successful IPO of America’s largest crypto exchange Coinbase. Shortly after the IPO, Coinbase experienced an exponential increase in its valuation, at one point shooting to $86 billion.
Jones hypothesized that if Ripple were valued at $86 billion similar to Coinbase, and taking into account its $21 billion XRP holdings, the overall valuation could reach an impressive $107 billion, which is close to that Twenty times its current market value.
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Jones sees another possibility in which the XRP price will rally back to its all-time high of $3.60, saying that if this happens, the company’s valuation could rise to $126 billion.
Jones emphasized that top companies like Nvidia, Apple and Amazon have reached trillions and billions in valuations. Considering Ripple’s focus on reputable companies and its potential. Therefore, Jones concluded that a half-trillion dollar valuation could be achievable. As a result, the financial expert concluded that investing in Ripple shares looks enticing and offers the potential for a significant 20x increase.
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