Ripple IPO could destroy the XRP price, according to many of the analysts. However, Brad Garlinghouse didn’t say that Ripple will be doing any IPOs.The current XRP price is moving down because of the overall market uncertainty and even conspiracy theories. With the rumors about Ripple IPO this year, analysts argue over its possible price fall.Ripple was making partnerships with companies like MoneyGram, to showcase the RippleNet’s real worth. In 2020, Brad Garlinghouse was talking about the cryptocurrency IPO’s in the space, and many people decided that he is thinking of making an IPO in 2020.Later, Garlinghouse claimed that he was just theorizing regarding the industry’s 2020 trends, and didn’t mean that Ripple will surely do so (so, probably not). However, his words here sound very
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Ripple IPO could destroy the XRP price, according to many of the analysts. However, Brad Garlinghouse didn’t say that Ripple will be doing any IPOs.
The current XRP price is moving down because of the overall market uncertainty and even conspiracy theories. With the rumors about Ripple IPO this year, analysts argue over its possible price fall.
Ripple was making partnerships with companies like MoneyGram, to showcase the RippleNet’s real worth. In 2020, Brad Garlinghouse was talking about the cryptocurrency IPO’s in the space, and many people decided that he is thinking of making an IPO in 2020.
Later, Garlinghouse claimed that he was just theorizing regarding the industry’s 2020 trends, and didn’t mean that Ripple will surely do so (so, probably not). However, his words here sound very promising:
“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.”
Warm Up Coffee Will Arrive Shockingly Cold?
Ripple CEO also claims that Bitcoin could not be used for payments. He refers to the famous example with a cup of coffee, claiming that ‘your coffee will be cold’ by the moment a transaction gets first confirmation:
“You don’t want to use BTC at Starbucks b/c by the time you get your coffee, it’ll be cold”
Julia Chatterley asked Brad about the Bitcoin and Ethereum dominance and tribalism among crypto holders. Garlinghouse said that he doesn’t care much about the ongoing battles and he is sure that XRP will not grow up solely on that soil.
He claims that Bitcoin and Ethereum are not even competitors to Ripple, because Bitcoin can make seven transactions per second, while Ripple does 1500. However, it is not fair to compare currencies based on silly or overall metrics. All cryptocurrencies solve their client’s problems, and they are not competitors, according to Ripple CEO.
Some may think that this cannot be true, the tribalism matters, and so on. But earlier, Andreas Antonopoulos who is known as ‘Bitcoin Guru’ claimed that Bitcoin and Ethereum are not competitors: like a lion is not a competitor to a shark. They just do their job in different areas, each coin has own specific goals.
Ripple IPO Could Be Harmful for XRP Price, Experts Say
Rakesh Upadhyay, the market analyst from CoinTelegraph, claims that the market participants may seek the profits too soon, spoiling the IPO:
“Though Ripple is making inroads, it is yet to disrupt the global money transfer system in a major way. 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.”
Upadhyay thinks that a sudden Ripple IPO will make it even worse for the company:
“A sharp fall in price will make it difficult for Ripple to raise money. It has been selling tokens, which shows that it is not making enough money to fund its operations. But unlike before, after the IPO, Ripple will also not be able to sell tokens without announcing beforehand. When announced, this will again hurt prices.”
CoinTelegraph’s Head of Markets Allen Scott claims that IPO would decrease the price of XRP:
“Many see Ripple selling XRP regularly as a recurring ‘IPO’ already sans shareholder rights. So this might actually hurt Ripple — it would put into question not only its operational costs and business model of dumping on the market but more importantly, the existence of XRP.”
Worth noting that Standard Chartered recently hired Ripple’s former VP, Kahina van Dyke, as their Head of Client data analytics and Digital channels. The British multi-national bank claims that van Dyke is a very valuable pick. He will help out with an analysis of data, raising the bank’s digital operations to a new level.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.