Ripple is reportedly considering an initial public offering (IPO) as its legal battle with the U.S. Securities and Exchange Commission (SEC) approaches its conclusion.

During a May 31 interview with Digital Perspectives, Linda P. Jones, a seasoned Wall Street veteran with 25 years of experience, alluded to this possibility by providing her expert analysis on the potential implications of a Ripple Initial Public Offering (IPO).

Jones performed an initial assessment to approximate the potential stock value of Ripple. Using the latest data from private investments firm Linqto, she determined Ripple’s current share price to be $35, which corresponds to a valuation of $5.7 billion. Linqto offers interested investors the opportunity to purchase stocks before the company goes public in an IPO. However, Jones highlighted a disparity in Linqto’s valuation, suggesting that it seems disproportionately low when considering Ripple’s historical performance and its significant holdings of XRP.

Drawing attention to 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. In her view, this valuation alone exceeds Ripple’s current market value by four times, indicating a significant undervaluation and suggesting that Ripple’s true worth could be considerably higher.

The pundit further drew a comparison to Coinbase’s successful IPO, speculating that Ripple’s valuation could reach $107 billion, 20 times its current value, meaning $600 per share.

According to her, if the XRP lawsuit concludes favourably and the token regains its previous high of $3.59, the XRP escrow value 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, considering the successes of companies like Nvidia and Apple.

Ripple has previously expressed its 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 lawsuit with the U.S. Securities and Exchange Commission (SEC) reached its conclusion. Recently, he expressed his belief in the case concluding in weeks.

Meanwhile, according to Eleanor Terrett, a Fox Business reporter, the blockchain firm reportedly conducted a successful private “roadshow” in April to meet with potential investors ahead of its IPO. Terrett tweeted on Thursday that the event was attended by numerous respected institutional investment firms on Wall Street, indicating strong interest in Ripple’s offering.

That said, as the lawsuit nears its end, a win for Ripple could have far-reaching implications for the firm and the broader cryptocurrency market. It could also enable the company to go public, increasing its popularity and potentially pushing the value of XRP to the long-awaited milestone of $10.

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Filed under: Bitcoin - @ June 4, 2023 2:31 pm