Top financial expert Linda Jones says buying Ripple shares, now around $40, ahead of IPO is a great buy.
Amid the growing enthusiasm for Ripple potentially going public with an Initial Public Offering (IPO), Wall Street financial expert Linda Jones shared her view.
Jones expressed that acquiring Ripple’s shares now ahead of the IPO is a great buy. She shared this view in a recent Linqto investor meetup. Pro-XRP influencer Digital Asset Investor shared a snippet of the meeting with the crypto community.
Interesting IPO Valuation discussion by @LindaPJones @linqtoinc investor meetup.
XRPZero value on the @ripple balance sheet currently👀👀👀 Will it be factored in an IPO? pic.twitter.com/2YuIHdPDDl
— Digital Asset Investor.XRP (@digitalassetbuy) August 31, 2023
Recall that The Crypto Basic reported yesterday, based on expert data, that Ripple has a 98% probability of an IPO.
Overlook Current Ripple Share Price
In the conversation, Jones stressed that investors should look past the current Ripple share price of $40. She argued that investors should focus on the company’s underlying value of around $6.6 billion.
According to Jones, Ripple has the potential for substantial growth in the coming years. In her words: “A valuation of something like 6.6 billion dollars with Ripple has the potential to at a much greater value.”
$10k Becoming $140k
This figure implies that Ripple’s current valuation is at least ten times lower than Coinbase’s. Based on that, Jones suggested that people buying Ripple shares now could potentially experience more than a tenfold increase in their initial investment.
Moreover, the Wall Street expert gave an instance. She noted that if an investor put $10,000 into Ripple, it could become a $100,000 investment. Interestingly, she believed the significant return on investment would materialize even without Ripple outperforming Coinbase’s success.
In her words
“… that’s just if it doesn’t do as well as Coinbase did. If it does better than Coinbase, which it could, and it could for one very important reason.”
Notably, the reason she believed Ripple could outstrip Coinbase’s success relates to Ripple’s accounting standard. In particular, Jones mentioned that Ripple currently assigns a zero value to its XRP asset on its balance sheet.
The financial expert believes if Ripple were to assign a value to its XRP holdings at the current $0.5, the growth potential could be substantial.
And if Ripple used XRP’s previous highs of approximately $3.84, it could result in a valuation over 14 times higher. This implies that the $10k investment could see an ROI of $140,000.