Is Ripple IPO Coming?
Ripple has been rumored to be planning an initial public offering (IPO) for several years. However, the company has yet to make any official announcements about an IPO. Recently, there was a rumor about the announcement of Ripple IPO during the Ripple party but not of such happened. However, once again the talks surrounding the Ripple IPO have started to make rounds.
This time it is related to the recent hiring practices of Ripple which have sparked speculation about the prospect of an upcoming initial public offering (IPO). There have been rumors about a potential IPO since Ripple sent out an ad about hiring a Senior Shareholder Communications Manager. The job involves developing connections with investors, managing dialogue with financial experts, and coming up with strategic ideas. To make sure investors are kept updated, the person in charge will collaborate extensively with other top members of the Ripple team.
However, all these can just be considered mere speculations unless the company itself makes an official announcement.
Advantage of Ripple IPO
Transitioning to a public company through an IPO could offer Ripple a range of advantages. These include:
Firstly, it provides access to a broader pool of investors, which encompasses institutional players like pension funds and hedge funds. This extended access to capital could serve as a catalyst for Ripple’s expansion plans.
Additionally, an IPO brings increased legitimacy and credibility. Although it subjects Ripple to heightened regulatory and investor scrutiny, it solidifies the company’s standing and that of its cryptocurrency. This, in turn, enhances Ripple’s appeal to potential partners and clients.
Moreover, going public generates substantial media coverage, elevating Ripple’s brand recognition among the general public. This will provide Ripple with higher visibility.
Disadvantage of Ripple IPO
While an initial public offering (IPO) holds several advantages for Ripple, it also introduces certain challenges:
An IPO brings increased regulatory scrutiny. Ripple is already engaged in a legal battle against the US SEC and as a publicly traded company, Ripple would face more extensive oversight from regulatory bodies.
There is the potential for short-term price volatility. The IPO process may lead to short-term price fluctuations in XRP as investors speculate on Ripple’s future prospects. This volatility could complicate cash flow management and financial planning for Ripple.
Going public would mean a loss of control. As a publicly traded company, Ripple’s ownership would be distributed among shareholders. Consequently, Ripple might need to make decisions that prioritize shareholders’ interests, even if these decisions do not perfectly align with the company’s best interests.
There have been talks about Ripple IPO but the company is yet to make an official announcement. Added to it, Ripple Labs is yet to submit a registration form for an initial public offering (IPO). However, Ripple CEO Brad Garlinghouse informed CNBC in 2022 that the business would investigate the possibility of an IPO if its legal dispute with the Commission on Securities and Exchanges was resolved.
Ripple did win the lawsuit against the US SEC but a review petition has been filed and the hearing for it is set to begin in 2024. Therefore, it is unlikely that Ripple will be announcing an IPO before that.
Performance of XRP
XRP, the native token of Ripple surged after the US court ruled in favor of Ripple recently but at the time of writing, XRP had already lost all the gains it had made. XRP price has been trading within the narrow range of $0.55 and $0.60.