The crypto industry was surprised to hear reports that Ripple CEO Brad Garlinghouse is considering taking the fintech company public in the near future, with many analysts speculating as to how this couple impact XRP.<\/p>\n
The news regarding their intent to eventually conduct an Initial Public Offering (IPO) isn\u2019t too shocking while considering their recent $200m Series-C funding round, but it is being viewed by investors as a bearish thing for XRP.<\/p>\n
It is important to note, however, that XRP\u2019s close ties to the company may actually be the sole thing that stops Ripple from listing on the public markets, due to the lack of clarity on the token’s potential status as a security.<\/p>\n
During a discussion at the World Economic Forum in Davos, Ripple CEO<\/a> Brad Garlinghouse told the Wall Street Journal that Ripple will be on the \u201cleading side\u201d of blockchain companies that go public.<\/p>\n \u201cIn the next 12 months, you\u2019ll see IPOs in the crypto\/blockchain space. We\u2019re not going to be the first and we\u2019re not going to be the last, but I expect us to be on the leading side\u2026 it\u2019s a natural evolution for our company,\u201d he noted, as quoted<\/a> by Asheesh Birla, Ripple\u2019s SVP of Product.<\/p><\/blockquote>\n The problem with Ripple going public \u2013 in the eyes of XRP investors \u2013 is that the stream of funding and liquidity garnered through a public listing would no longer make it of critical importance that the company builds utility around the XRP ecosystem.<\/p>\n This is because the company would no longer be semi-reliant on the stream of income<\/a> they receive from their quarterly token sales.<\/p>\n Jake Chervinsky, General Council at Compound Finance and an ex-litigator, spoke about the possibility that the lack of clarity surrounding XRP\u2019s status as a securities product will stop the company from actually moving forward with an IPO.<\/p>\n \u201c\u2018We might IPO in twelve months\u2019 is something you might say to reassure your Series C investors, but not something you actually do when your book value derives largely from a digital asset that could be an unregistered security,\u201d he explained in a recent tweet.<\/p><\/blockquote>\n "We might IPO in twelve months" is something you might say to reassure your Series C investors, but not something you actually do when your book value derives largely from a digital asset that could be an unregistered security.<\/p>\n — Jake Chervinsky (@jchervinsky) January 25, 2020<\/a><\/p><\/blockquote>\nWill XRP Be the Sole Factor That Stops the Company from Going Public?<\/strong>\u00a0<\/strong><\/h2>\n
\n