In a recent episode of Crypto Crossfire on Ben Armstrong’s crypto influencer channel, the discussion revolved around the pivotal factors that could drive XRP to reach $25.
The expert panel, comprising Ben Armstrong, AJ, and a moderator, examined the potential bullish catalysts for XRP, focusing on two pending events with defining potential for XRP.
Precisely, they weighed in on whether an XRP ETF or the eventual IPO of Ripple would lead to a sustained increase in XRP value to $25.
XRP MOON SCENARIO (Ripple’s Best Crypto Route to $25!) https://t.co/uvTA9Ebbi7
— Ben Armstrong (@BenArmstrongsX) November 15, 2023
What Has Bigger Impact on XRP: ETF or Ripple IPO?
Panelist AJ initiated the discussion, arguing what factor would exert a more substantial collective impact on XRP—Ripple’s IPO or an XRP ETF.
Without hesitation, AJ asserted his stance favoring the ETF, citing it as the more reasonable choice. Expanding on his perspective, AJ delved into the statistics, drawing a comparison with the Coinbase IPO.
He claimed that Coinbase’s initial public offering had a lackluster performance. Specifically, pointed out a disparity between its pre-IPO valuation and the valuation on the IPO launch day. AJ mentioned that while Coinbase’s valuation initially pumped, the firm has lost a significant percentage, claiming it is now down to $26 billion.
Drawing a parallel to Ripple’s potential IPO, AJ underscored the indirect relationship between Ripple’s valuation and XRP’s price. In particular, he pointed out that trading Ripple does not necessarily correlate with a direct benefit to XRP.
On the other hand, AJ emphasized the direct impact an ETF could have on XRP’s price. He drew historical examples with the Bitcoin Futures ETF, illustrating how ETF speculation led to higher highs in October 2021 and contributed to the broader bull run in November 2021.
AJ concluded that, based on past price action, ETFs and the associated speculation wield a more potent influence than an IPO.
Ben Armstrong Counters AJ’s ETF Stance
Meanwhile, Ben Armstrong offered a counter-perspective on AJ’s ETF stance. He clarified the uncertainties surrounding the correlation between an IPO and XRP’s price.
Armstrong emphasized that, unlike the traditional stock market, the crypto landscape lacks a clear precedent for the impact of a company’s IPO on the associated digital asset.
Armstrong argued that the crypto market, especially in the context of a major coin like XRP, is yet to witness the implications of such a significant event.
Unlike AJ’s claim, Ben asserted that Coinbase’s IPO was a phenomenal success. He clarified that the primary beneficiaries of an IPO are the company and its shareholders, leading to a temporary drop in stock prices as they cash in on their gains.
XRP Journey to $25
With XRP currently trading at $0.6468, the coin’s journey to $25 will require a percentage growth of at least 3,768%. Given the current controversial XRP ETF and the Ripple IPO in the offing, it remains to be seen which would wield more influence on XRP.