Ripple Chief Has a Prediction for Crypto Companies This Year

Ripple Chief Has a Prediction for Crypto Companies This Year

The Chief Executive Officer of Ripple, Brad Garlinghouse has predicted that Initial Public Offerings will become a frequent undertaking in the crypto sector in 2020.

The executive made this prediction at the just concluded World Economic Forum which was hosted in Davos, Switzerland. Brad also insinuated that Ripple will be looking to IPO this year. He notes that an IPO would cause the firm to evolve thereby putting them ahead of the curve.

Paradigm Shift
An IPO is a process of making a private enterprise publicly accessible to investors/traders, by listing it on the stock exchange and issuing new shares. It is popularly referred to as “going public” and offers the issuing party the opportunity to sell themselves to a larger market.

The crypto sector has always been focused on Initial Coin Offerings, which is an alternative method of issuing shares to the public for relatively new and small companies looking to bypass the burdensome regulatory and legal procedures that come with conventional IPOs.

As the industry develops (especially as a result of the post-heydey ICO rally of 2018, which exposed countless offerings as either illegal or fake), more and more crypto companies are looking to establish credibility with institutional investors by publicly enrolling on recognized stock exchanges and accepting all the scrutiny and financial divulgence that comes with it.

Brad strongly believes that several IPOs will be recorded this year, even though many of the big players in the sector have found it remarkably difficult to adhere to the strict requirements of an IPO

Alternative Measures
Some cryptocurrency companies, instead of enlisting and following through with an IPO, have decided to go after compliant token sales which will be under the purview of the United States SEC.

Already, cryptocurrency companies have started taking on IPOs. In November last year, Silvergate Bank, a commercial bank that caters to crypto-based enterprises, IPOed on the NYSE.

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.