Ripple and IPO may become the future of financial transfers. Ripple CEO Brad Garlinghouse at the 2020 World Economic Forum in Davos announced that the company is considering a public offering of shares, that is, an IPO, in 2020. After that, there was some skepticism and criticism about Ripple. However, the achievement of Ripple’s IPO is not negative. Experts at cointelegraph.com analyzed the likelihood and success of achieving an IPO Ripple.
Ripple and IPO: Details
Ripple, represented by CEO Brad Garlinghouse at the 2020 World Economic Forum in Davos, announced an IPO, and experts at cointelegraph.com gave their assessment. According to experts, 2020 may be the year when crypto companies take a step forward and do everything possible to become public. According to analysts, since major industry players are cautiously monitoring regulatory approval opportunities, the Ripple Forum CEO in Davos will announce that the company is considering an initial public offering later this year.
Experts emphasized that crypto firms striving to become public face a paradox. Financial firms often must comply with stringent regulatory standards. Failure to adequately reassure regulators could result in companies being forced to leave profitable markets or forced to shut down altogether. However, simply jumping to the other end of the spectrum and trying to integrate as much as possible into the financial flow is not as easy as it seems. Many investors and large financial companies are reluctant to take a high level of risk associated with cryptocurrency, or do not understand digital currencies at all. However, there are notable exceptions. Many of the world’s financial titans are experimenting with both blockchain technology and cryptocurrencies.
Many ideas, however, with the implementation is not so easy. Even the titans of the industry could not become public. Bitmain, once considered almost untouchable with a self-esteem of more than $ 1 billion, failed IPO attempts several times before succumbing to a fierce battle between the two founders. Given this, experts evaluated the ability of Ripple to achieve an IPO. Experts said that since its founding in 2012, the company has become a crypto heavyweight.
Ripple is incredibly successful, having survived, among other things, the cryptocurrency crisis in 2018. Now there is a conversation about the future IPO. According to Decentral Park Capital senior analyst Elias Simos, Ripple is likely to expect an improvement in market conditions in which it predicts an increase in demand for XRP along with an improvement in the value of the company’s assets. The specialist noted that now an active increase is beginning in the cryptocurrency market. This may indicate a higher demand for Ripple XRP, and, possibly, an increase in the value of the company’s assets.
Part of Ripple’s revenue comes from XRP “software sales,” but it’s not the only source of funding. During its existence, Ripple has attracted several influential firms. A noteworthy outcome was the $ 200 million raise in the C series round last year. Investing in Ripple could also be the impetus for an IPO announcement. The first round of Ripple financing took place in 2012. According to the expert, an IPO in 8 years for the successful cooperation that has passed since the C series is almost expected. The IPO itself means that companies must disclose the true state of their finances.
Financial performance will have to withstand a serious test. If the IPO succeeds in Ripple, then the company will be able to jump higher than most other crypto firms. This, in turn, can lead to increased demand for the Ripple XRP, higher prices and the creation of new use cases. A successful public offering will also be the logical development of the company, given the ever-growing list of investors who are looking for their share of the profits. Summing up, it can be noted that achieving an IPO is difficult, but generally feasible for Ripple.