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How Will XRP Price React If Ripple Share Hits $600 After IPO?

source-logo  thecryptobasic.com 02 October 2023 13:09, UTC

Recently, the XRP community has been abuzz about how XRP’s price would react in the eventual situation that Ripple goes public via an initial public offering (IPO).

The Ripple IPO anticipation intensified amid Ripple’s celebration of XRP’s non-security judgment in New York last week. The community had hoped Ripple would make an IPO announcement at the party.

However, what captivates the XRP Army is the speculation regarding Ripple’s shares once it is public. The community resurrected a video featuring Wall Street financial veteran Linda Jones discussing Ripple’s potential valuation.

Jones proposed a $5.7 billion valuation for a potential stock, setting the individual share price at $35 each based on Linqto platform data. Meanwhile, she believed $5.7 billion is a greatly conservative figure. The expert argued with a $107 billion valuation stemming from Ripple’s XRP holdings and the value with which Coinbase debuted.

In this scenario, Ripple stocks would be 20 times higher than their value during the interview. Besides, this projection would position Ripple’s stock around $600. Moreover, Jones asserted that Ripple possessed the qualities to be a high-value entity akin to Amazon or Apple.

How Will XRP’s Price React?

Should Ripple launch a stock that attains the levels the Wall Street expert forecasted, it provides ample grounds for the XRP price to surge in tandem with the stock price.

However, Ripple would be the pioneer among publicly traded companies with an associated digital asset. This may imply the absence of historical precedents to gauge the potential impact of the XRP digital asset.

Nevertheless, parallels can be drawn from Bitcoin’s relationship with the stock prices of Bitcoin mining firms. Historically, when the price of Bitcoin experienced an upsurge, the stock prices of Bitcoin mining companies mirrored the trend.

Applying this rationale to Ripple, a surge in its stock price would likely generate more interest in its underlying crypto, XRP. Such a scenario could lead to an upswing in XRP’s value.

Should the stock price eventually breach the $600 threshold, XRP’s price breaking into double-digit values could be within reality, experts suggest.

Moreover, a correlation between the performance of Ripple’s stock and XRP would likely exist. Therefore, a decline in Ripple’s stock could signify a crash in XRP’s price and vice versa.