The blockchain payment Ripple is in the altcoin news and rumors for launching an initial public offering (IPO). However, many experts believe that a Ripple IPO would devalue the cryptocurrency in which it holds a majority stake.
According to many market participants interviewed by media outlets over the weekend, Ripple is going public and has potential implications for the destiny of the XRP altcoin. The CEO of the company, Brad Garlinghouse, last week hinted that an IPO may occur within the next year.
As he said, the impetus behind a major fundraising event is clear for many commentators. However, people don’t know if it could reverse the token’s fortunes. According to experts, XRP is “yet to disrupt the global money transfer system in a major way.” As an analyst named Rakesh Upadhyay recently said:
“Initially, after the IPO, the market participants might be patient but they will soon seek results. When the results don’t come through, it will hurt prices.”
According to him, the lack of progress for Ripple despite its various deals with major banks and other businesses now means harder times are still to come. Moreover, a sure sign that liqudity is problematic is the mass selloff of XRP by Ripple.
As the Ripple news now show, these were bigger in 2019 than ever before. Even the IPO announcement failed to move the altcoin higher. The idea of an IPO becoming a straightjacket for Ripple was echoed by many.
For him, the IPO would be a litmus test for buyer appetites which are already under scrutiny after the XRP selloffs. “Many see Ripple selling XRP regularly as a recurring ‘IPO’ already sans shareholder rights,” an analyst named Allen Scott added.
By contrast, the contributor and ex-eToro analyst Mati Greenspan said that an IPO could allow Ripple to strengthen its position with XRP. “My feeling is that it would be positive. Additional funding for Ripple would mean less reason to sell off tokens,” Greenspan summarized.
Predictably, prominent XRP investors share even less of the sense of foreboding now. Even though some see the Ripple IPO as “healthy,” the effect that it could have on the XRP price could change a lot of things in the markets.
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