Ripple At A Critical Juncture Like Amazon In 1997, Says Investment Pro
21 Octubre 2024 - 4:00AM
NEWSBTC
Ripple Labs is approaching a pivotal turning point with a potential
initial public offering (IPO), a development that has been
speculated about for some time. An IPO could be a transformative
moment reminiscent of Amazon.com Inc.’s initial public offering
(IPO) in 1997. Jake Claver, a Qualified Family Office Professional
(QFOP), articulates this perspective in a thread on X, suggesting
that Ripple’s strategic maneuvers could mirror the trajectory that
propelled Amazon into a global tech behemoth. According to Claver,
the company has cemented its position within the blockchain
ecosystem through its robust cross-border payment solutions,
currently supporting over 300 financial institutions worldwide. The
company’s utilization of XRP, enables transactions that are
markedly faster and more cost-effective compared to those processed
via the Society for Worldwide Interbank Financial Telecommunication
(SWIFT) network. Claver emphasizes, “This positions Ripple as a
faster, more transparent SWIFT 2.0.” Despite these accomplishments,
Ripple has navigated substantial challenges, most notably its legal
battle with the US Securities and Exchange Commission (SEC).
However, recent court rulings have favored Ripple, potentially
clearing the path for larger opportunities, including a public
offering. Claver notes, “The recent court rulings in Ripple’s favor
could open doors to bigger opportunities, like going public.” Why
Ripple Is Like Amazon In 1997 Drawing a parallel to Amazon’s
evolution, Claver observed, “Just as Amazon was known as an online
bookstore before its IPO, Ripple is recognized for its blockchain
solutions. But there’s potential for much more.” He further
elaborated, “When Amazon went public, it raised $54 million,
enabling expansion into new markets.” Ripple also stands to unlock
potentially massive growth opportunities through a public listing.
Related Reading: Community To Collectively Send XRP Price On 1,800x
Rally To $1,000 Ripple’s strategic acquisitions, including that of
Metaco—now rebranded as Ripple Custody—demonstrate its intent to
broaden its market presence. Claver remarks, “With acquisitions
like Metaco, now Ripple Custody, they’re already showing an
interest in expanding their reach. This could be just the
beginning.” The potential implications of Ripple opting for an
Initial Public Offering (IPO) or a direct listing are multifaceted.
Claver outlines that an IPO would provide Ripple with fresh
capital, enabling rapid scaling and entry into new markets such as
tokenized securities, real-world assets (RWAs), and decentralized
finance (DeFi). He states, “An IPO would provide Ripple with fresh
capital, enabling them to scale quickly and enter new markets like
tokenized securities, RWAs, or DeFi.” Moreover, the influx of
capital from an IPO could facilitate further acquisitions, allowing
the company to expand its offerings and strengthen its portfolio.
Claver draws a direct comparison to Amazon’s acquisitions, noting,
“Ripple could use IPO funds to acquire other companies and expand
its offerings. Similar to Amazon’s acquisitions of Whole Foods and
Twitch, Ripple could break into new markets and strengthen its
portfolio.” Enhanced financial resources would also empower Ripple
to accelerate its research and development efforts. Claver
explains, “More resources would allow Ripple to accelerate R&D,
improve the XRP Ledger, and explore new applications like smart
contracts, tokenized real-world assets, and central bank digital
currencies (CBDCs).” Related Reading: Ripple Co-Founder Chris
Larsen Sends $1 Million XRP Donation To Kamala Harris Claver
differentiates between the two primary routes to going public: an
IPO and a direct listing. He elaborated, “An IPO involves issuing
new shares to raise capital, typically underwritten by investment
banks, but comes with costs like underwriting fees and regulatory
requirements. In contrast, a direct listing does not involve
issuing new shares; instead, existing shareholders sell their
shares on the market. This method is generally less costly and
quicker than an IPO.” Given Ripple’s robust financial standing,
with over $1.3 billion in cash reserves, Claver suggests that a
direct listing might be a viable option. “Ripple could opt for a
direct listing because it already has a strong balance sheet,” he
states. “A direct listing provides transparency and avoids lockup
periods that restrict insider sales in a traditional IPO.” Beyond
the financial mechanics, Claver underscores that going public
serves as a legitimizing force for Ripple. He draws a parallel to
Amazon’s IPO, stating, “Amazon’s IPO legitimized e-commerce. For
Ripple, a public listing would legitimize its role in global
finance, signaling to banks and regulators that it’s here to stay.”
The recent favorable legal rulings in Ripple’s case against the SEC
have significantly bolstered its position, making the prospect of a
public listing more feasible. Claver concludes, “Ripple is at a
critical juncture, much like Amazon before its 1997 IPO. If Ripple
follows a similar path, we could witness the rise of a new tech
giant. Whether through an IPO or direct listing, this move could
unlock significant growth for Ripple and the blockchain industry.”
At press time, XRP traded at $0.5478. Featured image from
Shutterstock, chart from TradingView.com
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