In a recent episode of Crypto Crossfire on Ben Armstrong’s crypto influencer channel, experts engaged in a lively debate over the factors that could potentially drive XRP to a staggering $25. The discussion revolved around two impending events: the introducing of an XRP Exchange-Traded Fund (ETF) and the highly anticipated Initial Public Offering (IPO) of Ripple, the company closely associated with XRP.
In this article, we delve into the arguments presented by the experts and explore the potential impact of these events on XRP’s price.
The Debate: ETF vs. Ripple IPO
The debate began with panelist AJ asking: What factor would have a more significant collective impact on XRP—Ripple’s IPO or an XRP ETF?
AJ quickly expressed his preference for the ETF, confidently presenting his case. He highlighted that the Coinbase IPO, a notable reference point, did not perform as expected. AJ pointed out the disparity between Coinbase’s pre-IPO valuation and its actual valuation on the IPO launch day, noting a significant drop. According to him, Coinbase’s valuation currently stands at $26 billion, considerably lower than its initial figures.
Drawing parallels to Ripple’s potential IPO, AJ emphasized that trading Ripple shares might not directly benefit XRP holders. Instead, he argued that an ETF, by its direct link to XRP, could have a more immediate and substantial impact on the digital asset’s price. AJ supported his argument by citing historical examples, including the Bitcoin Futures ETF, which triggered price surges in October 2021, contributing to the broader cryptocurrency bull run in November 2021. In conclusion, AJ asserted that based on past price trends, ETFs and the associated speculation could exert more influence than an IPO.
Ben Armstrong’s Counterargument
Ben Armstrong, another panelist, offered a contrasting viewpoint on AJ’s stance regarding the ETF. He raised valid concerns about the uncertainties surrounding the correlation between a company’s IPO and the price of its associated digital asset in the crypto market.
Armstrong underlined that the crypto landscape, especially for a major coin like XRP, has yet to witness the full implications of such a significant event. Unlike traditional stock markets, the crypto market operates differently, where IPOs often lead to immediate price fluctuations.
Armstrong argued that the primary beneficiaries of an IPO are the company itself and its shareholders, who may choose to cash in on their gains, potentially causing a temporary drop in stock prices. Contrary to AJ’s assertion, Ben contended that Coinbase’s IPO was successful.
Currently trading at $0.6468, XRP faces a substantial climb to the coveted $25 mark. Achieving this would necessitate a remarkable percentage growth of approximately 3,768%. Amid the ongoing debate surrounding the controversial XRP ETF and the forthcoming Ripple IPO, the crypto community remains in anticipation, eager to witness which of these events will have a more profound impact on XRP’s price trajectory.