Releasing an Initial Public Offering (IPO) by Ripple Labs, a blockchain company, could have a negative influence on the XRP digital currency price a major part of which is owned by the crypto company. According to a number of crypto analysists, an IPO can have a significant ramification for their crypto asset.
Brad Garlinghouse, the Chief Office Executive of Ripple Labs, suggested last week that during the year of 2020 the company may launch an Initial Public Offering. As the digital asset has not been doing so well recently, it is understandable why the company wants to hold an Initial Public Offering for XRP, however, it is not clear whether XRP price will get better or not.
One of the crypto analysts stated that even though Ripple has seen growth, it is still far away from its goal of changing the global financial system. The analyst said that after the IPO, the participants are going to strive for very fast results and the price of the digital currency will decrease. According to the crypto analyst, despite the partnerships of Ripple Labs with major financial institutions and banks, there is a lack of progress for the company. Liquidity of XRP has been an issue for the company recently.
If the price of XRP falls it will make raising funds even more difficult. As Ripple Labs has been selling coins, it is possible that the company doesn’t have enough funds to support its ventures. A crypto analyst by the name of Allen Scott also expressed that the ongoing sales of XRP as an Initial Public Offering would put into question the business model of the company and negatively affect it.
In order to get more information on Ripple & XRP price, check out Ripple Price updates as well as Ripple (XRP) Price Predictions.