Ripple won the fight—now it’s ghosting Wall Street despite a $40B IPO valuation
Despite winning its legal battle against the SEC, Ripple is delaying its IPO, citing sufficient private funding and the mismatch between crypto volatility and public market expectations.Summary
Following its landmark 2023 victory against the SEC regarding the status of XRP, Ripple has surprisingly confirmed it has no immediate plans or timeline for an Initial Public Offering (IPO). President Monica Long stated the company has about $500 million in funding and a private valuation near $40 billion, suggesting public markets are unnecessary for growth. This decision contrasts with cautionary tales like Coinbase and Robinhood, whose stocks struggled post-listing due to crypto volatility and regulatory uncertainty, which Ripple aims to avoid by staying private. Remaining private shields Ripple from the pressure of quarterly earnings volatility and potential conflicts between equity investors and its large base of XRP token holders. Furthermore, ongoing regulatory uncertainty makes public disclosure risky. The core issue highlighted is the fundamental mismatch between traditional public markets, which seek predictable earnings, and crypto-native firms dealing with volatile cycles and complex tokenomics. Ripple's move is seen as a strategic delay until regulations are clearer and the market is more stable, allowing it to maintain control over its direction.
(Source：CryptoSlate)