As talks of a potential Initial Public Offering (IPO) by Ripple gain momentum, recent observations shed light on the impact XRP could have on this move. In this article, we explore the significance of XRP’s valuation on Ripple’s balance sheet and how it could affect the overall value of the company.
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.
During a recent Linqto investor meetup, Linda P. Jones delved into the complexities of IPO valuation. She emphasized that while the share price often grabs headlines, the true measure of a company’s worth lies in its actual value.
Jones drew a compelling comparison to Coinbase, a cryptocurrency platform that went public with an eye-popping valuation of $86 billion. In contrast, Ripple’s current valuation stands at a more modest $6.6 billion, hinting at substantial growth potential. Jones speculated that Ripple might experience a valuation increase of over tenfold, akin to Coinbase’s trajectory.
Ripple presently accounts for its XRP assets at a zero value on its balance sheet. However, assigning a value to XRP, even at its current rate or a potentially higher one, could lead to a significant boost in Ripple’s valuation. To provide context, if XRP were to revisit its previous peak prices, this could create unprecedented investment opportunities.
Speculation regarding Ripple’s IPO gained momentum following a significant legal victory. Recent announcements by the company regarding celebratory events in New York to mark this achievement have further stoked the flames of IPO anticipation.
Related: XRP Lawsuit Update: Ripple to Respond to SEC’s Interlocutory Appeal Today!
Taking a retrospective glance, in 2019, Ripple’s valuation stood at $9.8 billion following a $200 million Series C funding round. Fast-forwarding to 2022, the repurchase of shares from this round catapulted Ripple’s valuation to an impressive $15 billion.
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