Catalyst for a Game-Changing IPO?

• Ripple might be eyeing a Public IPO as a community prediction on this is growing.
• The firm is preparing for its trial hearing with the SEC but has a celebratory party set for later this month.

Speculations about a potential Ripple Initial Public Offering (IPO) have been making the rounds. It has recently gained massive momentum amongst crypto enthusiasts especially after the company gained a partial victory against the United States Securities and Exchange Commission (SEC). Many people are wondering how the valuation of Ripple’s token XRP, which has been moving sideways like many other tokens in the broad digital asset market, will influence Ripple’s balance sheet and even the IPO.

At present, the Ripple ledger does not show the value of XRP. Still, it is expected that when the token price surges and the company decides to integrate it into its balance sheet, Ripple’s assets will see a significant valuation increase. Famous XRP investor Mr Man shared his observation with Crypto Twitter. He believes this move will trigger a boost in Ripple’s Assets Under Management (AUM) metric.

A few days ago, during a Linqto investor meetup, financial analyst and best-selling author Linda P. Jones explained some complexities involved in an IPO valuation.  Beyond the share price which usually takes the spotlight, Jones clarified that a company’s true worth is found in its actual value. For context’s sake, she cited American cryptocurrency exchange Coinbase as a reference.

In 2021 when the exchange announced that it was going public on the Nasdaq stock exchange to trade under the ticker symbol COIN, it was valued at around $90 billion. Compared to Coinbase’s remarkable valuation at the time, Ripple only holds a fraction of it. Currently, Ripple’s valuation is at a more modest $6.6 billion, although there is potential for an increase. Jones believes that Ripple’s valuation may experience as much as a tenfold increase.

On Ripple’s balance sheet, XRP has a zero value but assigning a value to the token, even at its current state in the market or even a higher one, will go a long way in boosting the entire valuation of the company. In the case where XRP hits its peak price, it might trigger outstanding investment opportunities. 

Ripple vs. SEC: Trigger for a Potential IPO

Judge Analisa Torres’ July 13th ruling that secondary sales of XRP do not qualify as security was a remarkable victory for Ripple. It was during talks about a celebratory event that discussions about a potential IPO sprung up. Brad Garlinghouse, Ripple’s Chief Executive Officer (CEO) announced on the X app that a “proper victory party” to celebrate the company’s recent win against the SEC has been scheduled and should be anticipated.

The event is scheduled to be held on September 29th in New York. With the celebratory event abuzz, questions on whether Ripple will take the opportunity to announce an IPO. Some others wondered if this would be the catalyst to propel XRP prices to $1 or beyond. In the meantime, Ripple is getting set for its second round of legal battle with the SEC as the regulator has sought a motion of leave to file an interlocutory appeal.

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