Source: Travis Wolfe
- Talks about Ripple’s IPO have been at their peak as analysts expect a settlement with the SEC in the coming months.
- Market experts believe that the company’s valuation could soar by 20 times following the IPO considering the massive XRP reserves with the company, currently at $21 billion.
As the news about Ripple being close to reaching a settlement with the U.S. Securities and Exchange Commission (SEC) has ignited a new discussion over Ripple planning for an Initial Coin Offering (ICO) very soon thereafter.
The conversation sprung up as one tweet suggested that Ripple conducted a private roadshow event earlier this year in April 2023. Back then, the blockchain firm met with a couple of Wall Street investors who showed interest in the company’s IPO.
NEW: In April, @Ripple hosted a private “road show” (a marketing event where a company and its underwriters meet with potential investors to generate interest in an IPO). I’m told it was attended by just about every reputable institutional investment firm on the Street. https://t.co/fyTzi6pr0W
— Eleanor Terrett (@EleanorTerrett) June 1, 2023
Ripple attorney John Deaton quickly weighed in noting that depending on the judgment of the SEC case, Ripple could be in a good position. He wrote: “If @Ripple wins the SEC lawsuit or gets the functional equivalent of a slap on the wrist, along with a ruling that ongoing and future sales of #XRP are not securities, the lawsuit will prove a blessing in disguise for Ripple”.
The lawsuit by the SEC has hurt Ripple and its business big time with several exchanges delisting Ripple’s native XRP token. As a result, the investors’ interest in Ripple’s XEP cryptocurrency has gone down significantly which has not performed at par with other altcoins in the market, ever since the lawsuit.
What Could Be the Potential Outcome of A Ripple IPO?
Linda P. Jones, a renowned Wall Street veteran with a 25-year career in the financial industry shared some insights into what could be the outcome of the potential Initial Public Offering (IPO) after a decisive legal ruling in the SEC lawsuit.
In one of her recent interviews, Jones made a back-of-the-envelope calculation into estimating Ripple’s stock value. The data from Linqto noted that Ripple’s shares have been currently priced at $35, reflecting a valuation of a staggering $5.7 billion. The Linqto platform allows investors to buy a company’s pre-stock IPO.
Will we see a record setting #iPO for #Ripple after the Judges decision?
Listen to 25yr Wall St veteran discuss what a @Ripple iPO could look like,a 20x Valuation=$600+ Ripple share price? #RETWEET #XRPArmy
Credit: @LindaPJones pic.twitter.com/Ph7vdoeR0e— Digital PerspectivesPermaBull (@DigPerspectives) May 31, 2023
Jones shed light on Ripple’s vast XRP reserves of 42 billion XRP tokens held in escrow and currently valued at $21 billion based on the current $0.50 price of XRP. The valuation of the XRP tokens currently outstrips Ripple’s current market value by four times. This shows that the company is currently at a significant undervaluation.
To validate her hypothesis, Jones also drew a comparison with the successful IPO of America’s largest crypto exchange Coinbase. Soon after going public, Coinbase witnessed an exponential jump in its valuation shooting all the way to $86 billion at one point.
Jones hypothesized that if Ripple were to be valued at $86 billion, similar to Coinbase, and considering its $21 billion XRP holdings, the combined valuation could reach an impressive $107 billion, nearly 20 times its current market value.
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Foreseeing another prospect where the XRP price surges again to its all-time high of $3.60, Jones said that the company’s valuation could shoot to $126 billion in that case.
Jones highlighted that top companies like Nvidia, Apple, and Amazon have achieved valuations in the trillions and billions. Considering Ripple’s alignment with renowned enterprises and its potential. Thus, Jones reasoned that a valuation of half a trillion dollars could be attainable. As a result, the financial expert concluded that investing in Ripple stock seems enticing, with the potential for a significant 20-fold increase.
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