Blockchain payment network Ripple launching an initial public offering (IPO) could, in fact, devalue the cryptocurrency in which it holds a majority stake. According to several market participants interviewed by Cointelegraph over the weekend, Ripple going public has potential implications for the fate of altcoin XRP.
The company’s CEO, Brad Garlinghouse, last week hinted an IPO may occur within the next year. In the face of flagging XRP prices, the impetus behind a major fundraising event is clear for commentators, but whether it would reverse the token’s fortunes is not at all clear.
“Though Ripple is making inroads, it is yet to disrupt the global money transfer system in a major way,” regular Cointelegraph contributor and analyst Rakesh Upadhyay said. “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.”
For Upadhyay, Ripple’s lack of progress despite its various deals with major banks and other businesses means harder times are still to come. A telltale sign that liquidity remains problematic is Ripple’s mass selloffs of XRP. As Cointelegraph reported, these were bigger in 2019 than ever before. Even the IPO announcement failed to move XRP/USD significantly higher.
By contrast, for fellow contributor and ex-eToro analyst Mati Greenspan, an IPO could allow Ripple to strengthen its position vis-a-vis XRP. “My feeling is that it would be positive. Additional funding for Ripple would mean less reason to sell off tokens,” he summarized.
What Impact Would a Ripple IPO Have on XRP Price?, CoinTelegraph, Jan 27
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