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Ripple IPO May Be Delayed, Crypto Pundit Gives Reasons Why

Crypto Pundit, Dushyant Shahrawat has suggested that the decline in the global financial technology companies may result in a delay in the highly anticipated Ripple IPO. 

FinTech Challenges May Push Back Ripple IPO Timeline

An XRP community member, Crypto Eri has shared details about Ripple IPO’s timeline in a post on X (formerly Twitter). The X post briefly shed light on a recent interview on NASDAQ Trade Talks, between global markets Reporter, Jill Malandrino and investment banker at Rosenblatt Securities, Dushyant Shahrawat.

When asked about his views on the current state of the financial technology industry, Shahrawat emphasized the declining performance of some major fintech companies. He mentioned companies like Block which had experienced major declines this year and saw its shares dropping more than 80% from its all-time high.

Shahrawat has stated that the underperformance of these fintech companies could result in a delay for cryptocurrencies scheduled to go public. He mentioned prominent names like Circle and Ripple, which had declared its intentions to initiate an IPO by 2024. 

“You can walk the hallways here, you’ve got Circle, Ripple, all the private fintech companies, unicorns, that were waiting in the wings to go public. That time frame (to IPO) got pushed back a little bit, quite a bit,” Shahrawat stated in the interview. 

Despite financial specialists predicting an early 2024 launch for the Ripple IPO, Shahrawat has hinted that a minor delay might be in store, at least until the bearish trend in the fintech sector shows signs of recovery. 

IPO Delay Amidst Regulatory Actions

A blockchain researcher and XRP community member, Collin Brown has also highlighted reasons contributing to Ripple’s IPO delay. Brown has disclosed that the present market conditions and the intensified regulatory scrutiny on Binance are the driving forces behind the postponement of Ripple’s IPO. 

“The Ripple IPO is being delayed due to market circumstances, as well as the need for the SEC and BlackRock to crack down on Binance. Now that the path is clear, they will likely prepare for another correction. This will allow Wall Street giants to buy Bitcoin and XRP at lower prices,” Brown said. 

The researcher has also stated that the price of XRP could be pushed toward $50 soon. This prediction is based on the potential approval of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). 

“Former NYSE President believes a Bitcoin ETF will attract a flood of money into the industry. Easier access to BTC will likely drive adoption and investment. Once the bitcoin ETF is approved, the XRP ETF will follow suit, pushing the price to $50 per XRP,” Brown said.

XRP price chart from Tradingview.com (Ripple IPO)

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Wall Street Expert Predicts Ripple IPO Date

Wall Street financial expert Linda Jones recently offered a detailed forecast regarding the potential Initial Public Offering (IPO) of Ripple. Speaking at a Fireside chat with Linqto, a pre-IPO investment platform, Jones outlined her insights into the expected timeline and factors influencing Ripple’s decision to go public.

Jones stated via X, “Here is my interview with Linqto today. We talked about when Ripple might go public, my back of the envelope calculation for what the stock might be worth and potential acquisition targets.”

Ripple IPO In May 2024?

Despite Ripple’s apparent lack of immediate need for IPO-related funds, Jones suggested that investor pressure might compel the company’s executives towards this path. She elaborated, “Well like I said, Ripple was founded in 2012, and I think their investors want the exit and Brad [Garlinghouse] will get pressure to do that even though they don’t need the money from the IPO.”

Her forecast hinges on a broader economic outlook, predicting a bull market spurred by decreasing inflation and interest rates, thereby creating a conducive environment for public offerings. “I do think we will go into this incredible bull market that will happen from the drop of inflation and interest rates that will lead to a very strong rise in stocks that will allow the IPO market to get very hot next year,” Jones added.

Jones pinpointed mid-May 2024, specifically around May 15, as the ideal window for Ripple’s IPO, contingent on favorable market conditions and company readiness. “I think there is an opportunity if Ripple wants to go public next year that mid-May would be an ideal time, right around May 15 would be an ideal time – that’s my first target that they might go public if everything – the stars, the Sun, and the Moon – lined up, and they wanted to go public,” she explained.

However, she also cautioned about the uncertainty of this timeline, indicating that if Ripple misses this window, the next viable opportunity might not arise until 2025. “If it doesn’t happen, then I think it probably won’t happen until 2025,” Jones remarked.

One Roadblock Remains To Be Removed

Further complicating Ripple’s path to an IPO is the ongoing legal conflict with the US Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse has acknowledged this challenge, noting that SEC approval for Ripple’s Form S-1 Registration Statement is necessary for an IPO. As long as the legal battle persists, this approval remains uncertain.

At press time, the XRP price traded at $0.6165 after dropping below the 0.382 Fibonacci retracement level.

XRP price

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Ripple IPO: Expert Reveals Why Investors Should Be Cautious

In a recent development, a prominent figure in the XRP community has explained why members of the community should be careful about being so excited about a Ripple IPO. Using historical data, she elaborated on why an IPO isn’t as straightforward and profitable as some might think. 

Why Investors Should Be Cautious

In a post shared on her X (formerly Twitter) platform, Crypto Eri revealed how investors aren’t excited about IPOs in what sounded like a note of warning to those who are ready to go all in if Ripple were to go public. 

The reason for investors’ lack of enthusiasm seems to be that the biggest IPOs of 2021 have shed 60% of their value since going public. According to her, this fact has also made other private entities cautious to hold off on their plans to go public. 

She highlighted certain “essential components” that investors should insist on when listening to anyone talk about price analysis and a company’s valuation. These components include the components cash balance, debt, value of investment portfolio, total shares outstanding, and value of any on-hand assets. 

While Eri seems to be more cautious about a potential Ripple IPO, some others have taken a more bullish stance and are ready to go all in on it. One of them happens to be pro-XRP Wall Street financial analyst Linda Jones, who had predicted that a Ripple stock could be valued as high as $600. 

She also touted XRP as the next big thing in the financial market as she likened the crypto token to Microsoft and Apple’s stocks. 

Maybe Not The Right Time For A Ripple IPO

Eri’s warning also seemed to be directed at Ripple as she highlighted key points that might make the crypto company reconsider if an IPO was already in the works. She drew comparisons between Ripple and other similar types of companies, as the former could take a cue from some of their actions. 

Interestingly, one of them happens to be Ripple’s partner, Nium Global, which she noted was holding off its US IPO to “possibly the second quarter of 2025.” She alluded to the fact that this decision was made despite the fact that Nium Global is doing pretty well and even recently launched a liquidity hub for FX. 

The XRP community might, however, not have to worry about how Ripple will fare if it goes public now, as there is evidence to suggest that the company doesn’t plan on doing so anytime soon. 

The founder of Dizer Capital, Yassin Mobarak, recently revealed that Ripple’s CEO Brad Garlinghouse mentioned that a Ripple IPO wasn’t feasible until the company’s legal battle with the SEC is over.

XRP price chart from Tradingview.com (Ripple IPO)