Ripple: an IPO on the way?
Ripple: an IPO on the way?
Blockchain

Ripple: an IPO on the way?

By Marco Cavicchioli - 24 Jan 2020

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There’s a rumour going around that Ripple might go public with an IPO.

The hypothesis was published on The XRP Daily, which reported about a 2-hour interview given by company CEO Brad Garlinghouse at the Wall Street Journal in Davos during the World Economic Forum 2020. 

At this time, the interview has not yet been published, but The XRP Daily reports that some Ripple executives who attended the event with Garlinghouse tweeted some excerpts from it. 

In particular, they mention a tweet from Ripple’s product SVP, Asheesh Birla, who writes: 

“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company. @bgarlinghouse at #WEF20”.

The XRP Daily’s interpretation of this tweet is that Ripple plans to go public, especially since in December 2019 the company had the biggest round of funding in its history, the Series C, which would be the last step before becoming a public company. 

As a matter of fact, what Garlinghouse said in Davos to the Wall Street Journal reporter would be quite clear: many crypto companies will be listed on the stock exchange through IPOs, and Ripple would like to be one of the first

The XRP Daily, although a biased source, suggests that an IPO could bring several benefits to Ripple, being a remarkable public relations manoeuvre that would attract much more mainstream media coverage of the project and could bring a lot of buzz around it, which in turn could lead investors into the XRP ecosystem.

After all, the scenario explicitly suggested by Garlinghouse seems absolutely plausible, although at the moment it is only a hypothesis. 

The timing, according to Ripple’s CEO, is expected to be that of a confirmation within 12 months, even though there is no guarantee that an IPO would necessarily have a positive impact on the value of the XRP cryptocurrency. 

However, if the company were to use alternative forms of financing to the sale of XRP on the market, it could also decide to reduce them significantly, which could benefit the market price of XRP. Anyways, this is only one of many hypotheses that can be imagined for the future of XRP. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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