At the World Economic Forum in Davos, Brad Garlinghouse, the CEO of Ripple Inc., the $10 billion firm that owns a majority of XRP, reportedly said the firm is planning for an initial public offering.
Unexpected, the reaction has been mixed with some venting through social media channels.
Ripple IPO in 12 Months
With billions of XRP translating to millions of dollars, critics are taking on Brad Garlinghouse and Ripple Inc.’s decision.
Speaking at the World Economic Forum in Davos on Jan 23, Brad said:
“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.”
“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.” –@bgarlinghouse at #WEF20
— Asheesh Birla (@ashgoblue) January 23, 2020
Should Ripple Inc. proceed with their plans and float shares, the company will need to comply with the US Securities and Exchange Commission (SEC) terms.
However, this is not the first time the CEO is entertaining the idea of regulation and IPO.
In an interview with CNBC, the executive said an “IPO would make sense at some point” and will only come when Ripple “have the right managerial maturity, infrastructure, and ability to forecast properly.”
Reaction from the XRP Community
Most commentators are disappointed. Some speculate that after the IPO, “XRP will be useless” for lack of utility even in price speculation:
“XRP going to dump like crazy lol. After IPO there is literally no use for XRP. Not even price speculation. It will become useless.”
Another said the move is only to make Ripple Inc. early investors billionaires. Questioning what the firm does with the billions of XRP under their control:
“A Ripple IPO – Well that’s incredibly disappointing to hear. What is it they can’t do with a half a billion dollars in cash and billions more in XRP escrow? The answer – make the early investors billionaires.”
“This is nothing but a wealth transfer mechanism and I find it utterly disgusting. There is zero reason for Ripple to become a publicly traded company – they don’t need the funds. I expected more from these guys.”
What is it they can't do with a half a billion dollars in cash and billions more in XRP escrow?
The answer – make the early investors billionaires. Look at the returns: pic.twitter.com/dC45PKYOAB
— GreenEggsnHam (@HamEggsnSam) January 23, 2020
The Goal of Ripple
Ripple Inc.’s goals are ambitious and through a transparent ledger, their goal is to improve remittance, making the process of sending and receiving money seamless and cheap.
Since launch, over 300 banks and financial institutions have jumped into bandwagon, utilizing their solutions, and slashing costs.
Their overarching goal is to improve user cases and build on demand for XRP in the long-term. XRP is an optional on-demand liquidity tool that payment, banks, or remittance companies can incorporate for instantaneous settlement.