Ripple IPO Rumors Swirl Again Despite Loss of U.S Business
Ripple's new job listing fueled speculation about a possible IPO
Key Takeaways
- Ripple’s job listing stirs IPO speculation.
- Ripple is still considering an IPO, with CEO Garlinghouse optimistic about SEC lawsuit resolution.
- The lawsuit’s uncertainty raises questions about the timing and feasibility of an IPO for the company.
Frequently, the function and responsibilities mentioned for the potential applicant are factors connected to specifications for a business thinking about an IPO.
On October 16, the fintech payments company Ripple published a new job listing for a senior manager of shareholder communications at several U.S. and international locations. Many cryptocurrency aficionados interpreted the job posting as a formal clue regarding the company’s intentions to go public.
Ripple Job Listing Fuels Speculation on Potential IPO Plans
Direct communication with shareholders is described as a requirement for the position in the job advertising, which is a term typically related to publicly traded businesses.
The selected applicant would be in charge of creating and putting into action communication and relationship management plans for “existing and prospective investors, current shareholders, and financial analysts.”
The candidate must, according to the job description, develop strategic plans that are especially appropriate for “M&A [mergers and acquisitions], investments, liquidity events, and other high-impact moments.”
As part of the initial public offering (IPO) preparation process, the function entails producing investor-focused materials such as “presentations, fact sheets, case studies, and analyses” to enlighten and educate potential investors about the company’s prospects and performance. The position’s duties also include administering routine communications like quarterly updates and keeping a shareholder database.
The job posting is cited by many XRP supporters and members of the pro-Ripple community on X (previously Twitter) as an indication that there may be an IPO. While they haven’t specified a date, some of the company’s top executives have also hinted that Ripple would go public.
The cryptocurrency-focused payments business has lately gained attention as a result of the SEC’s (Securities and Exchange Commission) lawsuit, which claims that XRP is a security. When a judge decided that XRP was not a security in terms of selling on digital asset exchanges, Ripple earned a significant victory in the dispute.
The SEC action, according to Key Ripple executives, has cost them numerous business prospects in the United States, but the majority of the company’s remittance activity is conducted outside of the country.
Ripple CTO Challenges Hoskinson on ETH’s U.S. Regulatory Treatment
Recently, Cardano inventor Charles Hoskinson came under fire from Ripple CTO David Schwartz for claiming that the US Securities and Exchange Commission gave ether preferential treatment over other cryptocurrencies. This claim is based on the “ETHgate” conspiracy theory.
According to ETHgate, ether was given special treatment by American regulators, particularly the SEC, because it wasn’t considered a security. Other assets, like XRP, continue to be plagued by regulatory uncertainty in contrast to this.
Hoskinson claimed in a recent AMA that the SEC materials revealed do not demonstrate any wrongdoing but rather regulatory favoritism towards Ethereum. He asserts that there is no proof of misconduct. Hoskinson was referring to the Hinman papers, which were made available to the general public on June 12. The records are seen to be essential to Ripple’s defense in its ongoing legal dispute with the SEC.
The Ripple CTO disagreed with this viewpoint, though. He said that corruption results from governmental favoritism that is in line with personal interests.
An important reason for the theory’s emergence is the SEC’s protracted determination that ether is not a security, despite the fact that other widely held assets, like XRP, are classified as unregistered securities.
XRP-favoring lawyer John E. Deaton is one of the ETHGate theory’s proponents. He believes that the SEC and Ethereum engaged in secret communications that caused regulators to exclude Ether from federal securities laws.
Ripple Eyes IPO Amid Optimism, But SEC Lawsuit Looms
In July this year, Ripple stated that it was considering going public. Also, at a meeting in Davos in May 2022 , CEO Brad Garlinghouse said that after the ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC) was resolved, Ripple would consider the prospect of an IPO.
He recently stated that he thought the issue would be resolved in a few weeks.
The blockchain company apparently held a successful private “roadshow” in April to meet with possible investors before to its IPO. Allegedly, multiple reputable Wall Street institutional investing firms attended the event, demonstrating a high level of interest in Ripple’s offering.
However, the question remains: Would the company really want to IPO there while still under an SEC lawsuit?
Its CEO Garlinghouse stated: “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.”
