Why Abandon XRP? XRP at $2 Would Yield Ripple a $100 Billion, as Experts Evaluate Ripple IPO

In a recent statement, prominent pro-XRP attorney John Deaton emphasized that the Ripple pre-IPO valuation is a considerable bargain compared to the potential $100 billion windfall if XRP’s value reaches $2. 

Deaton said this while responding to a recent report from Ripple detailing an XRP milestone in Dubai. As The Crypto Basic recently reported, Dubai’s financial authorities recently approved XRP as a legal and regulated crypto asset under its digital asset regime, allowing licensed firms to incorporate it.

The report garnered significant attention from the XRP community, given its pivotal nature. It also demonstrates Ripple’s readiness to push for legal and regulatory clarity for XRP at a time when most XRP community members are concerned that the company is pivoting away from the asset.

Notably, most of Ripple’s recent offerings have sent a message that the company is trying to shift its focus from XRP. The firm’s Liquidity Hub product does not feature XRP despite the asset’s regulatory clarity. These cases have raised concerns that Ripple might be abandoning XRP.

The Ties Between Ripple and XRP

Deaton attempted to debunk these claims. His comments on the matter first highlighted Ripple’s journey from its early Series A valuation of $128 million in 2015 to its latest Series C Buyback valuation of $15 billion in 2022.

As I’ve said for more than 3 years, Ripple is not going to abandon #XRP. It has a fiduciary duty not to.

Do the math:

2015: Series A valuation – $128M
2016: Series B valuation- $410M
2020: Series C valuation- $10B

2022: Series C Buyback valuation – $15B

Last year, Ripple… https://t.co/xnMUqjcQS8

— John E Deaton (@JohnEDeaton1) November 2, 2023

The lawyer stressed that Ripple’s decision to repurchase its Series C shares at a 50% premium during the cryptocurrency bear market and before Judge Analisa Torres’ ruling in the SEC case indicates strong confidence in itself.

He noted that the company’s pre-IPO shares currently trade below the $15 billion that Ripple paid to buy back its Series C stock. This further demonstrates Ripple’s assurance of its future. Deaton believes the company’s future success is intricately tied to XRP.

According to the attorney, due to the intricate ties, Ripple has a fiduciary duty not to abandon XRP. Notably, the firm holds a substantial 46.5 billion XRP, according to its latest market report. Deaton thinks this massive holding could become a crucial factor of success for Ripple if XRP succeeds.

If XRP achieves a major price milestone, it will translate into a significant boost for Ripple’s balance sheet. Should XRP hit $2, Ripple will be sitting on $100 billion. If the asset reaches $3, the company will hold $139.5 billion. This provides a clear illustration of the mutually beneficial relationship between Ripple and XRP.