Cryptocurrency

a Chance for the XRP price or a Disaster?

Ripple, with its native crypto-currency, XRP is definitely among the previous winners of the still young year 2020. The XRP price was able to break free from the clutches of the long downward trend from the year 2019. The Ripple rate was in December at just under $ 0.18, he was able to reach in mid-February in the lead up to 0,34 USD.
Apart from the fact that this was almost a doubling, could Ripple to outperform so also Bitcoin. Currently, the Ripple rate is 0,276 USD back below the important limit of 0.30 USD, but a total of 43% Plus seen in the year 2020 still.
A few weeks ago Ripple has announced that it may come within a year to an initial public offering (IPO) of the company. This will also have an impact on the XRP price. The question naturally arises: Is it an opportunity or a Disaster?

XRP price gets the death blow

The question above is not simple, because in the Wake of the announcement that it is to come to an IPO, of Ripple, the XRP price has no significant reaction.
Nevertheless think of many Crypto experts that the stock market could course have more negative than positive consequences. So the question is why Ripple has a IPO ever needed from the point of view of investors, for example.
The company already generates good profits from the controversial XRP sales and could additionally collect 200 million USD from investors by the end of 2019. Either a stock exchange could not rinse speed even more money in the coffers, which the company needs directly or Ripple has exorbitantly high costs.
More must also be taken into consideration that Ripple is supplied with an IPO, the expectations of investors, which could then, of course, increase the pressure on the XRP price. These expectations are not fulfilled, it could also fall XRP.
A regular point of criticism from the entire Crypto-Community is the question of whether Ripple XRP as a crypto-currency is needed at all necessarily. All Scott, the Head of Cointelegraph Markets, even thinks that the IPO could be the existence of a sample for XRP:

This could hurt Ripple so actually it would cost not only his operation and his business model of dumping (of XRP) on the market in question, but, what is more important, the existence of XRP.

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Ripple IPO as the XRP price driver

However, this evaluation is also positive ways to be. So Ripple could invest through the IPO collected more money in the infrastructure of your network, or the like. This would occur in the long run, of course, to the benefit of the Adoption of XRP, and then the course.
Another very important point is that Ripple could have been so due to the fresh capital less reason to sell his monthly up to 1 billion XRP out of the Escrow. In the past, this practice has been linked again and again with the long dry spell and the descent of the XRP rate. Ripple should sell through the IPO, less XRP, this would be clearly bullish. The Marti Greenspan, the founder of Quantum Economics is:

I have the feeling that this would be positive. Additional funding for Ripple would mean fewer reasons for the sale of tokens.

No clear direction

The question of whether it is for the XRP price is determined by the Ripple IPO up or down, you can finally, so it is not clear to answer. There are both reasons for a rally, but also some for a crash.
The fact that the XRP price rose around the release of the News with little reaction, does not make a forecast. A further possibility is, of course, that the IPO will have no effect on the rate, but that is rather unlikely. It only remains to be seen what will actually happen. Investors could benefit through a right strategy and a reliable Partner of both.

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About the author

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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