The post Ripple (XRP) News: Expert Forecasts XRP’s Impact on Ripple’s IPO and Balance Sheet appeared first on Coinpedia Fintech News
Amidst the burgeoning talks of an Initial Public Offering (IPO) by Ripple, recent observations shed light on the potential XRP might hold in influencing this move. A significant element to note is the valuation of XRP on Ripple’s balance sheet and how it could substantially impact the overall valuation of the company.
Valuing XRP: The Game-Changer?
Currently, Ripple’s ledger does not reflect the value of XRP. However, should the price of XRP surge and Ripple decide to integrate it into its balance sheet, the company’s assets could witness a substantial upswing. Observations from Mr. Man, a prominent XRP investor, suggest that this move could drastically augment Ripple’s assets under management.
At a Linqto investor meetup, Linda P. Jones delved into the intricacies of IPO valuation. She posited that, while the share price often captures attention, the company’s actual value is what truly matters.
Drawing a comparison, Linda highlighted Coinbase, a crypto platform that went public with a staggering valuation of 86 billion. Ripple’s current valuation stands at 6.6 billion, hinting at a significant growth potential. Linda speculated that Ripple might witness over tenfold enhancement in its valuation, reminiscent of Coinbase’s trajectory.
XRP’s Undervalued Potential
Ripple currently holds its XRP assets at a nil value on its balance sheet. If Ripple opts to assign a value to XRP, even at today’s rate or a potentially higher rate, its valuation could dramatically amplify. For context, should XRP revisit its previous peak prices, this could unlock unprecedented investment opportunities.
Speculations about Ripple’s IPO grew more robust after their noteworthy legal win. Recent announcements by the firm regarding celebrations in New York to commemorate this victory further fanned the IPO flames. A look back reveals Ripple’s valuation at $9.8 billion in 2019, following a $200 million Series C funding round. Fast-tracking to 2022, the repurchase of shares from this round elevated Ripple’s valuation to a hefty $15 billion.