Blockchain firm Ripple is reportedly preparing to launch an IPO, with its valuation reaching a record $40 billion, according to the latest data from CB Insights. The valuation increased rapidly as the fintech firm is expanding its footprint with banking giants. A public listing of this magnitude could alter the way Ripple and its native token, XRP, operate. It now falls among the list of unicorn companies, as it’s a privately held startup with a value of over $1 billion.
The XRP community rushed to social media, praising the $40 billion IPO valuation. A handful of bullish voices are doing the rounds, and the hype and buzz have intensified online. However, concerns arise that if Ripple launches an IPO and goes public, will it benefit XRP in any way? While the former is that of the business aspect, the latter is not interlinked, despite being a part of it.
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Will XRP Gain If Ripple’s IPO Goes Live?
Yes, XRP could gain at the beginning whenever Ripple’s IPO goes live due to the hype and buzz. It would reach mainstream media, making the name heard and seen to a bigger section of investors. However, the spike could be limited, as every buzz fades away in a week. Post that, the asset remains at the mercy of the market.
Ripple’s IPO will have nothing to do with XRP, despite the two sharing the same stage. Stock market investors will not end up investing massively in XRP, as their first goal would be to make money in Ripple. The cryptocurrency market would come next, and that is only if Ripple performs according to expectations.
The large pool of XRP investors would remain the same, with only a few new additions coming from the stock market. Therefore, Ripple’s performance in the charts, whenever the IPO is launched, will not affect XRP. Once the hype fades, it’s trading as usual for the digital assets community.