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Financial analyst Linda Jones believes Ripple should conduct its IPO when XRP is low-priced to prevent an inflated market cap.
Renowned crypto expert Linda Jones has shared her insights on Ripple’s potential initial public offering (IPO), suggesting that it would be strategically advantageous for the IPO to take place when the price of XRP is low.
Jones believes a lower XRP price would prevent an overly high market cap, making it more favorable for Ripple to go public soon after resolving the ongoing lawsuit.
I've thought about it and concluded that it makes sense to have an IPO when XRP is low-priced. When XRP is worth more, it will make the market cap too high, so the sooner after the lawsuit is over the better. https://t.co/mq37f3jbJC
— Linda P. Jones (@LindaPJones) June 1, 2023
Jones expressed her thoughts in response to a query from a U.S. Air Force veteran Mark Phillips about the advantage of Ripple being a publicly traded company instead of a privately held one.
She elaborated on the benefits of Ripple becoming a publicly traded company, including attracting new institutional customers more effectively. In addition, the regulatory oversight and transparency of being a publicly traded company could create a competitive advantage for Ripple in the ever-evolving crypto landscape.
In a similar conversation thread, Jones also pointed out several reasons why she believes Ripple’s IPO could happen sooner rather than later. Firstly, she mentioned a private roadshow meeting with analysts in April 2023, indicating that Ripple is actively engaging with experts and seeking their insights, as reported by The Crypto Basic.
Ripple Has a Better Chance in the IPO Market
Moreover, Jones, who has a 25-year experience in the financial industry, noted that companies with sufficient cash reserves, such as Ripple with its $1 billion funds, are better positioned to go public even in a challenging IPO market.
Good analysis! Reasons why I think it will IPO sooner:
1) Private road show meeting with analysts April '23
2) Only companies that don't need cash can IPO in a bad IPO market (#Ripple with $1B cash is one that can)
3) Momentum – the end of lawsuit will create strong demand#XRP https://t.co/0YWqFOT4FF— Linda P. Jones (@LindaPJones) June 1, 2023
The financial expert also highlighted the potential momentum that could be generated by the conclusion of the ongoing lawsuit with the US Securities and Exchange Commission (SEC), leading to a strong demand for Ripple’s IPO.
In a similar discourse, Jones theorized using various indicators that Ripple’s valuation would go up more than twenty times its current figure to trade at $600 per share, as reported by The Crypto Basic.
Ultimately, considering Jones’ analysis, Ripple may time its IPO strategically to coincide with low-priced XRP, reducing market cap risk and leveraging legal resolution momentum.