IPO Frenzy: What Happens To XRP Price If Ripple Stock Climbs To $600?
September 28 2023 - 10:00AM
NEWSBTC
One thing that has emerged that could influence the XRP price has
been the possibility of Ripple carrying out an Initial Public
Offering (IPO). This would mean that shares of the crypto firm
would become publicly tradable like that of Coinbase’s COIN stock.
However, even more prominent among investors is the possibility of
how high the price of the shares could trade. Financial Expert’s
Ripple Video Resurfaces The rumors had first begun with some
members of the XRP community talking about a possible IPO. Like
rumors are wont to do, it quickly took on a life of its own and
grew from there. But the most interesting thing so far has been the
resurrection of a video of financial expert Linda Jones talking
about a possible valuation for Ripple. Related Reading: Analyst
Presents 4 Charts That Prove Crypto Is Not Dead Jones had put
forward a valuation of $5.7 billion for a possible stock, which
placed the single share price at $35 apiece at the time, using data
from the Linqto platform. She points to the XRP in circulation
which comes out to over $21 billion. Given this, she believes that
Ripple’s stock valuation at $35 is too low. Comparing Ripple to
Coinbase which IPO’d at an $86 billion valuation, the financial
analyst points out that Ripple stock would be valued much higher.
She takes into account the market cap of the XRP supply as well, at
which point she arrives at a $107 billion valuation. In this case,
the value of Ripple stocks comes out to 20x higher than what they
were valued at the time that the interview was made. This would put
the Ripple stock at a value of around $600, but with the
possibility of being higher as the expert points out Ripple’s
valuation could reach as high as half a trillion. According to her,
the company has what it takes to be considered a high-value company
like Nvidia or Apple. What Happens To The XRP Price In This Case?
If a Ripple stock were to be released and it reached as high as
Jones’ calculations present, then there is more than enough reason
for the XRP price to rocket alongside the stock price. In this
case, Ripple would be the first public company to have a
cryptocurrency, so there is really no historical data. However,
some similarities can be drawn from Bitcoin’s connection to the
stock price of Bitcoin mining companies. Related Reading: Crypto
Analyst Predicts Huge Double-Digit Breakout For Bitcoin Price When
the price of Bitcoin rallies, the stock price of Bitcoin mining
companies have often followed suit. This is often because a surge
in faith in one translates to a rise in faith in another. Applying
the same logic to Ripple and a surge in the stock price would
likely result in more interest in the underlying cryptocurrency,
resulting in an increase in the XRP price. If the stock price
eventually climbs above $600, then it is not out of the ordinary to
expect the XRP price to cross $5 at least. Additionally, there
would likely be a strong correlation in the performance of both
assets, so a drop in one could mean a drop in the other, and vice
versa. Token price rises above $0.5 once more | Source: XRPUSD on
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