Insights
Will Ripple go public?
A few months back, Ripple CEO Brad Garlinghouse gave a hint that the company may conduct an initial public offering (IPO) in the coming twelve months while speaking at the Wall Street Journal event at World Economic Forum. Ripple secured $200 million during series C funding, which is the highest amount that the firm has obtained from private funding in the last eight years.
Ripple is an American company which is based in San Francisco and was launched in 2012. The company’s primary aim was to develop an efficient global cross-border payment solution. The company’s CEO believes that there are chances of a rise in the IPO on the Cryptos as Crypto companies are looking for opportunities to gain regulatory approval so that they can access the lucrative markets. Meeting the stringent regulatory standards means their integration with the mainstream financial industry. However, many financial companies don’t understand the potential of the cryptocurrencies, so they are reluctant to adopt them, so there is no surety if Ripple IPO is the best route for the company.
Ripple IPO
Ripple, along with XRP, is getting a significant position in the crypto world. XRP is now the 4th largest digital asset in the world. The company has been funded from 2013, and it has successfully raised $292 million with the help of prominent VC players like IDG Capital Partners, SBI Holdings, Google Ventures, etc.
CEO of Ripple, Brad Garlinghouse, has announced plans that the company is going public in 12 months. In an interview at World Economic Forum 2020, he hinted that few crypto/blockchain companies would go public with their IPOs this year.
There are reports that it might be true as there is a significant drop in venture capital funding for Blockchain companies in 2019.
Ripple, after going public, will allow its investors to invest in the company shares. Some believe that after going public, Ripple will have to share its balance sheets with institutional investors and the public. People will get to know the finances behind the XRP sales, and if the majority of people don’t like how the business works, things will become worse for Ripple.
Some analysts believe that Ripple’s lack of progress shows that hard times are still to come.
