Ripple’s recent victory over the SEC is a game-changer, allowing the company to regain lost stability and take on new ventures to enhance its signature cross-border payment solution. The icing on the cake? The Mastercard Partnership. Even amid a recent dip in the crypto market, Ripple’s own token, XRP, has received positive attention.
XRP, Ripple’s native digital currency, experienced a significant boost recently, with the price rising to an impressive $0.94, tantalizingly close to $1. As of today, XRP is trading at $0.51.
Jones’s Bullish XRP Theory
Renowned Wall Street expert Linda Jones believes investing in Ripple stock at its current price, hovering around $40 ahead of its potential initial public offering (IPO), is a smart move. Despite the current share price, Jones encourages investors to look beyond the direct numbers and consider the underlying value of Ripple, which she estimates to be around $6.6 billion.
Jones claims that Ripple has significant growth potential in the coming years, drawing a parallel with Coinbase, a US-based cryptocurrency exchange, which went public with a staggering $86 billion valuation.
Read more: Here’s how XRP can boost Ripple’s IPO value!
Buy now, pick later!
Since Ripple’s current valuation is at least 10 times lower than Coinbase’s, Jones suggests that individuals buying Ripple shares today could potentially witness more than 10x higher initial investment.
She gives an example to illustrate this point: If an investor allocates $10,000 to Ripple now, that investment could potentially grow to $100,000, even if Ripple fails to outperform Coinbase.
Understanding the Future impact
What makes it interesting is its distinctive accounting practice. Currently, Ripple assigns a zero value to its XRP assets on its balance sheet. On this, Jones argues that if Ripple set a value on its XRP holdings at the current price of $0.5 or based on the previous high of around $3.84, the growth potential would be significant.
Simply put, a $10,000 investment in Ripple could yield an impressive return on investment (ROI) of $140,000, assuming Ripple follows a similar trajectory to Coinbase. However, it is important to remember that investing in stocks always involves a degree of risk, and past performance is not necessarily indicative of future results.
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