The rumors of Ripple possibly issuing an Initial Public Offering (IPO) have been making the rounds for some time now. Although it hasn’t been categorically confirmed or denied by Ripple or its executives, a particular crypto founder has provided evidence that suggests that a Ripple IPO isn’t happening anytime soon.
Ripple IPO Not Happening Till After SEC Lawsuit
In a post shared on his X (formerly Twitter) platform, the founder of Dizer Capital, Yassin Mobarak, mentioned that he doesn’t believe the rumors claiming that Ripple was going to go public this year or early in 2024.
As to his reason for this, he recalled when he attended an event this year where he was opportune to discuss with Ripple’s CEO Brad Garlinghouse. He had questioned Garlinhouse, particularly about the possibility of the IPO happening anytime soon.
Mobarak stated that Ripple’s CEO, in response to his question, “articulated” the fact that the Securities and Exchange Commission (SEC) must approve the company’s prospectus before they can go public and noted that it was unlikely that will happen while his company was still had an ongoing legal battle with the Commission.
However, Garlinghouse allegedly explained that they were considering other options, like a liquidity event outside the United States, but he didn’t give any timeframe as to when that could happen. As such, Mobarak urged those who were peddling the IPO rumors and even those who were filled with ‘hopium’ about this happening to “temper” their expectations.
XRP price falls to $0.68 | Source: XRPUSD on Tradingview.com
John Deaton Echoes Similar Sentiment
In a post on his X platform, pro-XRP legal expert John Deaton echoed Mobarak’s sentiments when he mentioned that Ripple had “zero plans” of issuing an IPO before June 2024. He didn’t give any specific reason for his opinion. Instead, he inserted a caveat in his post, noting that he had “zero insider information.”
His opinion and the timeline of June 2024 may, however, be related to the fact that an IPO isn’t expected until the SEC’s case against Ripple is over. Deaton had previously stated that he doesn’t foresee a final judgment from Judge Analisa Torres until late summer “at the earliest.” At the same time, it could take a year before either party gets the chance to file an appeal.
Meanwhile, regarding a settlement between both parties, Deaton opined that there are no current or ongoing settlement talks between Ripple and the SEC. If that is the case, the case could end up dragging longer than expected, which would consequently affect when Ripple will be willing to apply to the SEC to approve its IPO prospectus.
Featured image from Binance, chart from Tradingview.com
