Decoding Ripple’s IPO Puzzle: Eri’s Insights, Market Parallels

Eri suggests that private innovators, including Ripple, might turn to venture capital in improved market conditions.

Decoding Ripple's IPO Puzzle: Eri's Insights, Market Parallels
Decoding Ripple's IPO Puzzle: Eri's Insights, Market Parallels

By drawing parallels to other businesses, Eri recently tweeted her opinion on the extensive discussion surrounding Ripple’s possible initial public offering (IPO).

In particular, she analyzed the financial market’s general sentiment toward initial public offerings.

Initially, Eri cited Nium, a partner of Ripple, whose CEO, Prajit Nanu, told a Singapore-based interview in June that the company might postpone its IPO until the second quarter of 2025.

Despite the recent introduction of Global FX, a liquidity solution, she emphasized that Nium had halted its U.S. IPO plans.

As an additional safeguard against currency fluctuation risks, this solution enables organizations to secure FX conversion rates within a 24-hour timeframe and schedule.

Additionally, Tranglo, a subsidiary of Seamless Group and a partner of Ripple, was referenced by Eri.

Similarly, Tranglo has prolonged its public offering date by an additional six months, she announced. Since this delay has occurred, a 23% loss of cash in the trust has transpired, per her account.

A concurrently occurring occurrence that Eri emphasized was the prosperous initial public offering (IPO) of Nubank, which Warren Buffett supported.

In December 2021, the largest fintech bank in Latin America went public on the New York Stock Exchange, according to the XRP influencer.

She further stated that at its initial share price of $9, Nubank was valued at $45 billion. Eri confirmed, notwithstanding the issuance of a token, that the share price of Nubank has declined 23% from its peak.

Eri concluded, based on the examples cited, that the general perception of IPOs appears to be ambivalent. In addition, a recent study supported her estimation of the general public’s lack of interest in IPOs.

The greatest IPOs of 2021 have experienced a 60% decline in value, according to the report.

However, Eri asserted that in improved market conditions, a backlog of private innovators, including Ripple, might contemplate venture capital.

Concurrently, the influencer dispatched a protocol to facilitate precise assessments of company valuations.

When making projections regarding prospective share prices, Eri underscored the importance of considering various factors such as the cash balance, debt, investment portfolio value, completely diluted total shares outstanding, and the worth of any current assets.

Amidst the community’s rampant speculation regarding Ripple’s IPO schedule, the company’s CEO has stated that an initial public offering in early 2024 is not feasible.