Speaking at the World Economic Forum in Davos, Garlinghouse said that initial public offering (IPO) is a natural evolution of any company.
“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,”Brad Garlinghouse @ Davos
Crypto companies have thus far been using initial coin offerings (ICO), which are very similar and arguably another version of an IPO for newer companies that avoids many of the complicated regulatory stipulations involved in the process.
However, many ICOs have been unsuccessful or completely fraudulent, and as the crypto market continues to grow and mature, companies want to prove to investors that they are viable.
Another method used by crypto firms like Blockstack is compliant token sales, a process that has been approved by the U.S. Securities and Exchange Commission (SEC).
Garlinghouse said he foresees some consolidation in the future to help with some of the IPO requirements, as even some of the biggest players in the industry still struggle to meet them.
Ripple’s Current Money Situation
Last month, Ripple raised $200 million in a Series C funding round, which is a common step before a company decides to go public, according to a report by Yahoo! Finance. The round valued the company at $10 billion.
Ripple has raised a total of $293.6 million in funding to date, according to Crunchbase. It remains to be seen how much more Ripple ends up raising in an IPO.
Earlier this week, Ripple reported sales figures of XRP for the fourth quarter and saw an 80% drop. The firm sold a total of $13.08 million in XRP in Q4, compared with $66.24 million in the previous quarter. The Q4 sales figures are the lowest in the past three years, according to The Block’s research. The price of XRP also declined by 22% during Q4. Ripple has so far sold a total of $1.22 billion worth of XRP, according to The Block’s research.
XRP/USD is trading at $0.21892 with the nearest support being the psychological $0.2100. This area is reinforced by SMA50 daily. Once it is taken out, the sell-off may be extended towards$0.2000 and an ultimate bearish goal created by the lower line of the daily Bollinger Band at $0.1960.
On the upside, the initial bull’s target is seen at $0.2200. This level limited the decline during the previous week; however, currently, it serves as a resistance area. We will need to see a sustainable move above this handle for the upside to gain traction.
The next important area comes at $0.2300. Once it is out of the way, we may see an extended recovery towards SMA100 daily at $0.2380.