Why You Should Be Cautious About Ripple IPO
In a recent post, Crypto Eri warned investors to be cautious about getting excited over a potential Ripple IPO. She pointed out that the biggest IPOs of 2021 have lost 60% of their value since going public, making other private entities hesitant to go public.
She emphasized essential components investors should consider when listening to price analysis and company valuations, such as cash balance, debt, investment portfolio value, total shares outstanding, and on-hand assets.
While some are optimistic about a Ripple IPO, others like pro-XRP Wall Street financial analyst Linda Jones predicted a Ripple stock could be valued as high as $600. She also touted XRP as the next big thing in the financial market.
Maybe Not The Right Time For A Ripple IPO
Eri’s warning may also be directed at Ripple, highlighting key points that might make the crypto company reconsider if an IPO was already in the works. She noted that Ripple’s partner, Nium Global, is holding off its US IPO despite doing well.
However, evidence suggests that Ripple doesn’t plan on going public soon. Ripple’s CEO Brad Garlinghouse mentioned that a Ripple IPO wasn’t feasible until the company’s legal battle with the SEC is over.
Hot Take: The Reality of Ripple’s Future
Ripple’s potential IPO has sparked mixed reactions within the XRP community. While there is excitement about its prospects, caution is advised due to the volatility of recent IPOs and ongoing legal battles with the SEC. The decision to go public remains uncertain amid concerns raised by prominent figures in the community. It seems that for now, it may not be the best time for Ripple to pursue an IPO given prevailing market conditions and regulatory challenges.
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