There’s been a lot of discussions recently about the outcome of the Ripple lawsuit, but there’s another interesting topic grabbing attention: the possibility of Ripple going public with an IPO. This news gained even more traction when NASDAQ sent its congratulations to Ripple for acquiring Metaco. The stock exchange’s message is adding fuel to the rumors that Ripple might consider an IPO and get listed in the near future.
According to a market analyst, if Ripple were to go public through an IPO, there’s a chance that its valuation could surpass $600 per share. Read on for more details.
Potential Ripple IPO: Expert Analysis and Undervaluation Concerns
Linda P. Jones, a Wall Street veteran, has offered her expert perspective on what a future Ripple IPO could entail. In a recent video, Jones took a simplified approach to estimate the potential stock value of Ripple.
Using the latest information from Linqto, she noted that Ripple’s shares are currently valued at $35 each, indicating a total valuation of $5.7 billion. It’s worth mentioning that Linqto offers investors the opportunity to purchase a company’s stock before it goes public with an IPO.
Will we see a record setting #iPO for #Ripple after the Judges decision?
Listen to 25yr Wall St veteran discuss what a @Ripple iPO could look like,a 20x Valuation=$600+ Ripple share price? #RETWEET #XRPArmy
Credit: @LindaPJones pic.twitter.com/Ph7vdoeR0e
— Digital PerspectivesPermaBull (@DigPerspectives) May 31, 2023
However, Jones made a compelling point by emphasizing that the valuation given by Linqto appears surprisingly low given Ripple’s impressive track record and substantial holdings of XRP. Jones highlighted that the 42 billion XRP tokens stored in escrow are currently valued at $21 billion, assuming a market rate of $0.50 per token, drawing attention to Ripple’s enormous XRP reserves. This valuation alone is four times higher than Ripple’s current market value, clearly indicating a substantial undervaluation of the company.
Comparing Ripple’s Potential to Coinbase’s IPO Success
Jones drew an interesting comparison to the highly successful initial public offering (IPO) of Coinbase, which is the largest cryptocurrency exchange in America. After going public, Coinbase experienced an incredible surge in value, with its valuation skyrocketing from $86 billion to unprecedented levels.
Jones added that if Ripple were to be valued at a similar level as Coinbase, specifically $86 billion, in addition to its $21 billion worth of XRP holdings, the combined valuation could reach a staggering $107 billion.
The financial expert came to the conclusion that Ripple’s stock seems to be a compelling investment opportunity, possibly promising a 20-fold growth.
She commented, “Where we are today, it is worth 20 times what’s on Linqto. So, it’s a great buy, a great investment. I think it can only be up from there.”