Ripple’s $500 million raise shows Wall Street caution with its XRP-heavy holdings: Report

Ripple recently completed a $500 million share sale at a $40 billion valuation, attracting elite investors like Citadel Securities. However, the terms of the investment reveal significant caution from Wall Street regarding the risks in the crypto sector, particularly Ripple's heavy reliance on XRP. Specifically, some investors secured a put option allowing them to sell their shares back to Ripple after three or four years at a predetermined price, guaranteeing a 10% annual return unless Ripple completes an Initial Public Offering (IPO) beforehand. This structure creates potential future financial obligations for Ripple as it seeks to diversify away from its dependence on XRP, whose value has significantly decreased during the recent crypto downturn.

(Source：Crypto Briefing)