XRP Price Slumps Despite Speculation of Ripple IPO
Discussions surrounding a potential Ripple IPO have faded as the crypto community grapples with XRP’s underperformance during the recent market bull run. While the broader market is experiencing a correction, XRP has been hit particularly hard, dropping over 8% in the past 24 hours and falling below the crucial $0.50 support level.
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Ripple IPO: A Distant Hope?
The prospect of a Ripple IPO has been a source of speculation for some time. While Ripple itself hasn’t confirmed a timeline, CEO Brad Garlinghouse hasn’t ruled it out. Industry experts have weighed in, with some predicting a high likelihood of Ripple going public. Analyst Linda Jones, for example, believes there’s a 98% chance based on research by Pitchbook.
Strategic Timing for an IPO?
Some experts, like Jones, argue that a low XRP price could be the ideal time for a Ripple IPO. Attorney John Deaton has even predicted an IPO within a year of Ripple’s legal victory in the US.
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Post-IPO Ripple Share Price Predictions
Last year, Jones projected Ripple’s shares could reach $600 after an IPO, valuing the company at nearly $100 billion. This prediction was based on factors like Coinbase’s post-IPO valuation and Ripple’s significant XRP holdings. Data suggests Ripple’s pre-IPO shares are currently trading around $45, significantly higher than last year’s $35. A similar increase post-IPO would translate to a massive 1,242% valuation jump for Ripple.
Potential Impact on XRP Price
While a surge in Ripple’s share price could positively impact XRP, historical data is scarce to accurately predict the extent of this influence. A hypothetical 1,242% increase mirroring the potential rise in Ripple’s share price, would push XRP to $6.63, based on its current price of $0.4940.
Investor Caution Advised
Industry comments suggesting a guaranteed price increase for XRP based on the IPO are purely speculative and shouldn’t be considered financial advice. There’s no guarantee that Ripple’s share price will directly correlate with XRP’s price.
Uncertain Future for XRP
Whether an IPO will trigger a similar surge for XRP remains to be seen. Investors should be cautious and conduct their research before making any investment decisions based on such speculation.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
