Crypto Lawyer Raises Doubts About Ripple IPO
Bill Morgan, a pro-XRP lawyer and cryptocurrency enthusiast, has expressed skepticism about the possibility of Ripple launching an Initial Public Offering (IPO) in the near future. Morgan believes that Ripple’s ongoing legal challenges with the United States Securities and Exchange Commission (SEC) create an unfavorable environment for an IPO to take place.
Ripple’s Legal Battle with the SEC
Ripple has been embroiled in a legal dispute with the SEC since 2020, when the regulatory body filed a lawsuit against the company for allegedly violating securities laws. The SEC accused Ripple of selling $1.3 billion worth of tokens without registering them as securities. While Ripple secured a partial victory in 2023 when programmatic sales of XRP were not classified as securities, the legal battle with the SEC is still ongoing.
Morgan’s Doubts About an IPO
Morgan argues that it would be unlikely for Ripple to go public while it is still entangled in a lawsuit with the SEC. He questions why Ripple would choose to launch an IPO amidst ongoing legal challenges. To support his point, Morgan shared a screenshot of the Remedies phase in the Ripple and SEC case, which is scheduled to conclude by April 29, 2024.
Predictions and Price Impact
Many experts have speculated that a Ripple IPO could potentially boost the price of XRP, as the cryptocurrency has struggled to experience significant growth. However, XRP’s current price stands at $0.57, and its position as the fifth-largest cryptocurrency by market capitalization was recently surpassed by Solana in Hong Kong’s Virtual Asset Consortium’s crypto index.
Uncertain Future for Ripple IPO
Despite rumors of a Ripple IPO in 2024, a recent report challenges these speculations. Ripple CEO Brad Garlinghouse has announced plans to buy back $258 million worth of shares from early investors, but he clarified that this does not imply an imminent IPO. However, many XRP enthusiasts still anticipate an IPO following the resolution of Ripple’s legal battle with the SEC. They believe that an IPO would provide broader exposure to Ripple as a company and XRP as a cryptocurrency.
Hot Take: Ripple IPO Remains Uncertain Amidst Legal Challenges
The feasibility of a Ripple Initial Public Offering (IPO) in the near future remains uncertain due to the ongoing legal battle between Ripple and the SEC. Pro-XRP lawyer Bill Morgan questions why Ripple would choose to go public while facing regulatory challenges. Despite speculation about an IPO potentially boosting the price of XRP, the cryptocurrency has struggled to rally significantly. With Ripple’s CEO emphasizing that buying back shares does not indicate an imminent IPO, it is unclear when or if Ripple will launch an IPO. The outcome of Ripple’s legal case with the SEC will likely play a significant role in determining the future of an IPO.
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