Crypto Eri, a recognized XRP influencer, has advised caution when discussing the potential Ripple initial public offering (IPO).
In a recent tweet, Eri commented on the widespread discourse about Ripple’s potential IPO by comparing similar companies. She particularly examined the broader IPO sentiment within the financial market.
When you hear people discuss Ripple IPO, comparisons should be made with similar types of companies. When you investigate market IPO sentiment/intent, one to watch is Ripple Partner @NiumGlobal. They are holding off a US IPO to possibly the second quarter of 2025, CEO Prajit Nanu… pic.twitter.com/4uetKOtNEE
— ?Crypto Eri ?Carpe Diem (@sentosumosaba) November 5, 2023
Similar IPO Seeking Firms and the Overall Sentiment
First, Eri pointed to Ripple’s partner Nium, whose CEO, Prajit Nanu, stated in a June interview in Singapore that the firm might delay its IPO until likely Q2 of 2025.
She highlighted that Nium suspended its U.S. IPO plans despite recently introducing a liquidity solution called Global FX. This solution allows businesses to lock FX rates within 24 hours and schedule conversions to protect against currency fluctuation risks.
Furthermore, Eri mentioned another Ripple partner, Tranglo, under the parent company Seamless Group. She noted that Tranglo has similarly extended its public listing date by six months. According to her, this delay has unfortunately resulted in a 23% loss of cash in the trust.
Meanwhile, Eri highlighted another related event by referring to the successful IPO of Nubank, backed by Warren Buffett. The XRP influencer noted that Latin America’s largest fintech bank went public on the NYSE in December 2021.
She added that Nubank was valued at $45 billion with an opening share price of $9. However, Eri underscored that Nubank’s share price has dropped 23% from its all-time high despite launching a token.
With the cited instances, Eri resolved that the overall sentiment towards IPOs seems lukewarm. Besides, she backed her sentiment about the general investors’ disinterest in IPOs with a recent study. According to the report, the largest IPOs in 2021 have crashed 60% in value.
Nonetheless, Eri stated that a backlog of private unicorns, including Ripple, may consider going public if market conditions improve.
Checklist for Accurate IPO Analysis
In parallel, the influencer provided a checklist for accurate company valuation analysis.
Eri emphasized the need to consider cash balance, debt, the value of the investment portfolio, fully diluted total shares outstanding, and the value of any on-hand assets when estimating potential share prices.
While speculation about Ripple’s IPO timeline is rife in the community, Ripple’s CEO has disclosed that an early 2024 IPO is impractical.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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