Can it be that the big shots at Wallstreet want the parent company of Ripple to go public with an IPO? Is it true that they see potential in the technologies coming out of Ripple Labs that they want a piece of the action? I mean, who can blame them. Ripple is constantly making news in the Crypto-Verse.
This additional news of interest by Wallstreet on a Ripple Labs IPO can make a Crypto enthusiast like myself to yell like The Legendary Ric Flair due to excitement…and to walk around in an imaginary wrestling ring.
So what makes Ripple labs scream out IPO to Wallstreet?
The usual list that I keep reiterating is there.
- The management team is top notch. I have gone further as to refer to them as The Avengers of Technology
- Proof of concept of the coin. Ripple is fast with a lightning fast 3.3 second transaction speed
- Back end software products by Ripple Labs are also fast and being tested by banks such as SBI Consortium in Japan. The software products include xRapid, xCurrent and xVia
- The partnerships keep coming day and night…Moneygram, UniCredit, Bank of America, SBI Banking Consortium and Rumors of an Ecobank (Africa) Partnership
Boom! Need I say more?
Wallstreet is aching for the action as can be seen in this article in the nasdaq website.
So why would Ripple even consider the choice of an IPO?
Firstly, the initial thought of such a venture will set the prices of the Ripple coin to the Moon and past Mars and into another Galaxy. If this rumor were verified and actualized, we could well see Ripple doing a few hundred dollars on the Crypto Exchanges. I can not predict if it will be 1, 2 ,3 or 4 Hundred, but it will soar to Another Galaxy!
Secondly, the stock itself would cause sleepless nights for wall-street and individual traders as they try to get the stock at a low initial price. As a result, and due to the dynamics of trading, the price of the stock would also skyrocket. If this were the case, we’d find Wallstreet Stock Brokers also using words like ‘To The Moon.’
Thirdly, the added capital or revenue from the IPO would pump much needed money to research and development. The abilities of Ripple Labs would expand exponentially. So much so, that they might even want to actually Land on THE MOON or MARS like Space X.
However, going public has its disadvantages.
The first and most obvious is regulation and Ripple Labs having to align themselves according to the Securities Exchange Act of 1924 by the SEC. I am not a lawyer but such an outdated act might even require Ripple Labs to abandon the cryptocurrency aspect of the business or even tighten the noose on its trading platforms. Therefore, regulation would be a bad thing for Ripple.
Another disadvantage would be Ripple Labs having to answer to shareholders. We all know that decision making is faster when there are a few members who can form opinion, policy and shape regular operations in a company. But when shareholders walk in, they want a say in everything irrespective of relevance to the company operations. This means more time spent in meetings and more time lost as the surrounding technology evolves in faster and better payment options.
In conclusion, the thought of a Ripple IPO is exciting to the point of making me scream and yell like Rick Flair. But upon close analysis, such a move should be treated with caution by The Avengers of Technology at Ripple.
By going public, they risk the much dreaded regulation that Cryptocurrency enthusiasts like myself hate. Also, it might even signal an exodus of coin owners who might even consider it as a sell-out move to Wallstreet for profit. It is well known that some Venture Capitalists use IPOs to cash out their initial investment on a company. Such a cash out is usually in the billions leaving smaller investors getting in at the IPO stage with the burden of an over-hyped company.
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