Ripple IPO: Expert Reveals Why Investors Should Be Cautious
In a recent development, a prominent figure in the XRP community has explained why members of the community should be careful about being so excited about a Ripple IPO. Using historical data, she elaborated on why an IPO...
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In a recent development, a prominent figure in the XRP community has explained why members of the community should be careful about being so excited about a Ripple IPO. Using historical data, she elaborated on why an IPO isn’t as straightforward and profitable as some might think.
Why Investors Should Be CautiousIn a post shared on her X (formerly Twitter) platform, Crypto Eri revealed how investors aren’t excited about IPOs in what sounded like a note of warning to those who are ready to go all in if Ripple were to go public.
The reason for investors’ lack of enthusiasm seems to be that the biggest IPOs of 2021 have shed 60% of their value since going public. According to her, this fact has also made other private entities cautious to hold off on their plans to go public.
She highlighted certain “essential components” that investors should insist on when listening to anyone talk about price analysis and a company’s valuation. These components include the components cash balance, debt, value of investment portfolio, total shares outstanding, and value of any on-hand assets.
While Eri seems to be more cautious about a potential Ripple IPO, some others have taken a more bullish stance and are ready to go all in on it. One of them happens to be pro-XRP Wall Street financial analyst Linda Jones, who had predicted that a Ripple stock could be valued as high as $600.
She also touted XRP as the next big thing in the financial market as she likened the crypto token to Microsoft and Apple’s stocks.
Maybe Not The Right Time For A Ripple IPOEri’s warning also seemed to be directed at Ripple as she highlighted key points that might make the crypto company reconsider if an IPO was already in the works. She drew comparisons between Ripple and other similar types of companies, as the former could take a cue from some of their actions.
Interestingly, one of them happens to be Ripple’s partner, Nium Global, which she noted was holding off its US IPO to “possibly the second quarter of 2025.” She alluded to the fact that this decision was made despite the fact that Nium Global is doing pretty well and even recently launched a liquidity hub for FX.
The XRP community might, however, not have to worry about how Ripple will fare if it goes public now, as there is evidence to suggest that the company doesn’t plan on doing so anytime soon.
The founder of Dizer Capital, Yassin Mobarak, recently revealed that Ripple’s CEO Brad Garlinghouse mentioned that a Ripple IPO wasn’t feasible until the company’s legal battle with the SEC is over.
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