Could A Ripple IPO Be An Attractive Investment?
A cryptocurrency exchange that trades in Ripple equity has released a recent report related to the viability of an IPO and how successful it could be. Researchers believe that it could be difficult for Ripple to be competitive in this market, but its technology could be adopted by other large financial institutions.
SharesPost Releases Ripple’s IPO Report
SharesPost, an Alternative Trading System (ATS), has released a new report about how a Ripple IPO would perform. Apparently, the fact that a virtual currency such as XRP working as a settlement solution would be an obstacle. This digital asset would compete against other traditional financial settlement services.
The report mentions that the payments sector is worth more than a trillion dollars and it is highly competitive. There are large banks, processing firms and also blockchain payment startups operating in the market. SharePost explains that Ripple is well positioned because it has already partnered with financial institutions around the world.
At the same time, the report says that firms such as Ripple are not going to be profitable anytime soon. According to the research, there are competitors that have the purchasing power to create their own solutions. One of these firms is JP Morgan Chase with the JPM Coin that will be used to perform transactions between clients of the institution.
SharesPost allows institutional investors to trade pre-IPO stock, such as equity in Ripple Labs. The firm has already raised over $90 million from two different funding rounds. Ripple Labs also sells XRP tokens from the escrow accounts they have.
Nonetheless, researchers show that RippleNet is a safe, efficient and also a reliable alternative to current payment methods. Thus, an IPO would clearly generate a lot of interest from investors. Back in September 2017, Brad Garlinghouse, the CEO of Ripple, said that the company was not yet ready for an Initial Public Offering, but that it could make sense in the future.
Moreover, the researchers say that Ripple could become attractive for large financial institutions. These companies could be working on their own payment systems and they could eventually be interested in adopting Ripple’s technologies.
Ripple also has the xRapid product that allows firms to have liquidity on-demand on specific corridors. Using the XRP digital asset it is possible to improve and enhance cross-border payments. Currently, XRP is the third largest digital asset in the market. It has a market cap of $14.91 billion and each XRP can be purchased for $0.357.