Ripple is considering an initial public offering (IPO) as it approaches the conclusion of its legal battle with the U.S. Securities and Exchange Commission (SEC), news report suggested.
In an interview with Digital Perspectives, seasoned Wall Street veteran Linda P. Jones provided her expert analysis of the potential implications of a Ripple IPO. Jones conducted an initial assessment to estimate the potential stock value of Ripple, using the latest data from private investment firm Linqto. Based on this analysis, she determined that Ripple’s current share price is $35, which gives it a valuation of $5.7 billion. However, Jones pointed out a significant disparity in Linqto’s valuation, suggesting that it appears disproportionately low when considering Ripple’s historical performance and its substantial holdings of XRP.
Jones emphasized Ripple’s extensive XRP reserves, highlighting that the 42 billion XRP tokens held in escrow are currently valued at $21 billion, assuming a market rate of $0.50 per token. She believed that this valuation alone exceeds Ripple’s current market value by four times, indicating a significant undervaluation and suggesting that Ripple’s true worth could be considerably higher.
Drawing a comparison to Coinbase’s successful IPO, Jones speculated that Ripple’s valuation could reach $107 billion, which is 20 times its current value, equivalent to $600 per share. Additionally, she noted that if the XRP lawsuit concludes favourably and the token regains its previous high of $3.59, the XRP escrow value could surge to $150 billion, potentially driving Ripple’s stock price even higher. Finally, she expressed her belief in Ripple’s potential to achieve a half-trillion-dollar valuation, citing the successes of companies like Nvidia and Apple.
Ripple has previously expressed its intention to go public, with CEO Brad Garlinghouse stating in May 2022 that the company would explore the possibility of an IPO once the ongoing lawsuit with the SEC reached its conclusion. Recently, Garlinghouse expressed his confidence that the case would conclude in the coming weeks.
According to Fox Business reporter Eleanor Terrett, Ripple reportedly conducted a successful private “roadshow” in April to meet potential investors ahead of its IPO. The event was attended by several respected institutional investment firms on Wall Street, indicating strong interest in Ripple’s offering.
If Ripple emerges victorious in the lawsuit, it could have significant implications for the company and the broader cryptocurrency market. It could pave the way for Ripple to go public, increasing its popularity and driving the value of XRP to the much-anticipated milestone of $10.
