AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Will Ripple file for IPO in 2021?
Ripple Labs CEO Brad Garlinghouse announced that the blockchain company plans to go public in 2021, once a final resolution is in place against the SEC lawsuit. Post settlement, the price of its XRP tokens may go up by breaching the existing FUD (fear, uncertainty, and doubt) among investors.
One of its leading shareholders, Japanese fintech firm SBI Group, is also backing Ripple initial public offering (IPO).
Currently, Ripple’s XRP token stands suspended from the largest US-based crypto exchange Coinbase due to the ongoing legal proceeding against the digital payment firm. The crypto exchange may relist XRP tokens on its trading platform once it goes public on the US stock markets.
Copyright © 2021 Kalkine Media
Ripple & SEC
The US Securities and Exchange Commission (SEC) has accelerated its resolution in the Ripple Labs lawsuit. On June 22, the SEC submitted a timeline document in the court stating that it plans to overturn a testimony subpoena and will move a motion for the same on Thursday, June 24.
Ripple is expected to respond to the SEC’s motion on July 1, 2021. After a week, the US regulator would file its response to defend its motion.
A faster resolution to this lawsuit may help Ripple come up with its much-awaited IPO in 2021.
In December 2020, the SEC claimed that the fintech firm illicitly received US$ 1.3 billion by selling non-listing securities including its crypto exchange-listed XRP tokens. The company has already recorded an interim upper hand in this case after the SEC lawyer argued to distinguish XRP from Bitcoin (ETH) and Ethereum (ETH). The latter claimed that ETH and BTC are commodities, whereas XRP tokens are securities.
Earlier Ripple CEO Garlinghouse reportedly stated that only the US regulator is treating their XRP token as a security while the rest of the world considers it as cryptocurrencies like BTC and ETH.
Ripple’s token has a robust use case in remittance transactions as well as foreign exchanges. It is developed on a “Hash Tree”, not on a blockchain network. Hash Tree allows a constant data configuration.
SEC’s lawsuit impact on Ripple (XRP)
Meanwhile, Ripple’s native tokens have defied the heat of this lawsuit and soared over 191 per cent. Crypto investors have been keenly waiting for Ripple IPO, which is expected to beat the buzz Coinbase Global Holdings (COIN:US, NASDAQ:COIN) created in mid-April this year.
Crypto experts believe that XRP tokens are still undervalued in fear of any uncertain SEC’s crackdown on the third-largest cryptocurrency. XRP coin was trading at US$ 0.65 apiece on Wednesday, June 23, compared with its all-time high of US$ 3.4 per token.
How to buy Ripple (XRP) stocks?
Investors will be able to buy the Ripple (XRP) stocks only after the company goes online. As of now, the blockchain firm has not revealed its IPO details.
Please note: The above constitutes a preliminary view and any interest in stocks and cryptocurrencies should be evaluated further from an investment point of view.
