Ripple, the blockchain firm embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC), is reportedly contemplating an initial public offering (IPO) as the case approaches its conclusion. Industry experts have been analyzing the potential implications of a Ripple IPO, with some suggesting that the company’s true value may be significantly higher than its current market valuation.
Linda P. Jones, a seasoned Wall Street veteran with 25 years of experience, provided her expert analysis on the matter during a recent interview with Digital Perspectives. Jones assessed Ripple’s potential stock value, considering the latest data from private investment firm Linqto. She estimates that Ripple’s current share price is $35, valuing the company at $5.7 billion. However, Jones argued that this valuation seems disproportionately low when considering Ripple’s historical performance and its substantial holdings of XRP.
Highlighting 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. She suggested that this valuation alone exceeds Ripple’s current market value by four times, indicating a significant undervaluation. Jones speculated that if Ripple’s XRP lawsuit concludes favorably and the token regains its previous high of $3.59, the value of the XRP escrow could surge to $150 billion, potentially driving Ripple’s stock price even higher. She further 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 road to IPO
Ripple has previously expressed its intention to go public. CEO Brad Garlinghouse stated in May 2022 that Ripple would explore the possibility of an IPO once the ongoing lawsuit with the SEC concluded. The recent private “roadshow” organized by Ripple in April further fueled speculation about the company’s plans for an IPO. The event attracted the attention of several respected institutional investment firms on Wall Street, indicating strong interest in Ripple’s offering.
As the legal battle between Ripple and the SEC approaches a verdict, a win for Ripple could have significant implications for the company and the broader cryptocurrency market. It could pave the way for Ripple to go public, increasing its popularity and potentially driving the value of XRP to new heights, including the long-awaited milestone of $10.
While the IPO itself may still be several months away, the recent private investor meeting suggests that Ripple is strategically planning for the future. The positive developments in the XRP lawsuit, including the court’s decision to make certain documents public, have already positively impacted the price of XRP, which has surged over 37% in the last 30 days.
The outcome of the legal battle and Ripple’s subsequent decision on an IPO will shape the future trajectory of the company and its position within the cryptocurrency industry.