Restructuring Ripple for an IPO: A New Narrative for XRP?
On October 14, the well-known XRP influencer Wrath of Kahneman (WoK) ignited a lively discussion on platform X about the potential restructuring of Ripple in preparation for an Initial Public Offering (IPO). WoK presented a scenario where Ripple could transfer its cross-border payment operations to a subsidiary, creating a clear distinction between the brand and #XRP. This departure from Ripple’s previous identity as solely a payments company sparked interest.
WoK followed up with another tweet, offering a more positive outlook for XRP. He speculated that such a move could enable XRP to function as an independent entity focused solely on advancing its payment functionalities.
Despite being based in the US currently, WoK suggested the possibility of overseas registration for Ripple, which could provide tax advantages. He also proposed that this restructuring would allow the payments subsidiary to acquire smaller remittance companies without requiring approval from Ripple’s shareholders.
Redefining Ripple-XRP Relationship Post-IPO
In his tweets, WoK hypothesized that after going public, Ripple could distance itself from XRP by relocating its cross-border payment operations to subsidiaries. This shift would signify a significant departure from Ripple’s previous status as a payments-centric firm. WoK also proposed establishing the subsidiary corporation outside the US to leverage international tax benefits. According to his hypothesis, this overseas entity could autonomously acquire smaller remittance ventures without needing approval from Ripple’s shareholders.
These speculations by WoK have sparked conversations within the crypto community, shedding light on the potential implications of Ripple’s IPO and subsequent restructuring on XRP and its development as a payment solution.
Hot Take: The Future of Ripple and XRP
The discussion prompted by WoK’s tweets raises intriguing possibilities for Ripple and XRP. While the idea of restructuring the company and establishing a separate entity for XRP may offer benefits such as clearer branding and increased autonomy, it also presents challenges in terms of regulatory compliance and potential conflicts of interest.
As Ripple continues to navigate its path towards an IPO, it will be crucial to carefully consider the implications and ensure alignment with its long-term goals. The future relationship between Ripple and XRP remains uncertain, but this conversation has undoubtedly sparked new perspectives on the evolving landscape of digital payments.
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