If Ripple’s stock reaches $100 after its IPO, the price of XRP could potentially double. While discussions about Ripple’s upcoming IPO have slowed down, the company remains committed to going public. Some experts, like attorney John Deaton, believe that the IPO may happen after the SEC lawsuit concludes, which has been ongoing for nearly four years.
Due to regulatory issues in the United States, Ripple CEO Brad Garlinghouse mentioned in January that the company has considered the possibility of going public overseas. Garlinghouse reiterated last month that pursuing an IPO under the current SEC administration would not be logical.
However, despite these discussions, industry leaders still believe that an IPO in the United States is possible, especially considering recent significant developments. If this were to happen, there are projections of a substantial increase in the per-share value and overall valuation of Ripple’s stock.
Linqto, an American investment firm that allows investments in pre-IPO stocks, has provided estimated figures for Ripple’s valuation and the price of each share. According to their data, Ripple’s share is currently valued at $40.99, with a total estimated valuation of $7.3 billion. This is an increase from the $5.7 billion valuation recorded last year.
In February, media personality Zach Rector suggested that Ripple could have one of the largest IPOs in recent times due to its significant holding of XRP. If these projections come true and Ripple’s stock reaches a high value of $100 per share, experts believe that this could have a significant impact on the price of XRP.
The Crypto Basic recently analyzed how much XRP’s price would increase if it followed the proportional increase of Ripple’s stock post-IPO. With Ripple’s stock currently valued at $40.99, a surge to $100 would require a 2.43x increase. If XRP followed the same proportion, its price would rise to $1.16 from its current value of $0.4792.
At $100 per share, Ripple’s valuation could reach $17.8 billion, considering there are 178 million outstanding shares, according to Linqto’s data. However, many industry experts believe that this figure might be an underestimate.
For example, Deaton predicts that Ripple’s valuation could reach $100 billion after the IPO, which would translate to $561 per share. If XRP followed the same proportion, its price would skyrocket to $6.56.
Similarly, Wall Street veteran Linda Jones predicts that Ripple could trade at $600 per share, citing its substantial holdings of XRP. A $600 price would require a 14.63x increase from the current value per share. If XRP followed the same rate of increase, its price could exceed $7.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article may reflect the author’s personal opinions and do not necessarily represent the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
