7 months ago
25 ARTICLE AD
With talks with investors continuing and Ripple valued at an astounding $11 billion, expectations for the company’s future IPO plans are growing.
David Schwartz, the Chief Technology Officer (CTO) at Ripple Labs Inc has shared important details about his stock options amid IPO conversations. His opinion has sparked curiosity about Ripple’s plans for an Initial Public Offering (IPO).
David Schwartz Stock Option
Schwartz revealed that he is uncomfortable with the level of risk associated with his current stock holdings and hinted at potential future actions to manage this risk. He mentioned that he might sell some of his Ripple stock to purchase more, pointing to expiring options and important tax implications.
“Funny story: I actually may have to sell some more Ripple stock soon in order to buy more Ripple stock. I have some options to buy Ripple stock that I’ve had for so long, they’re close to expiring. But exercising them has a huge tax cost,” says Schwartz.
The CTO’s comments arose amid a heated discussion in the online community where enthusiasts asked him to clarify his position on Ripple vs XRP shares. The discussion focused on the intricacies of stock ownership, with crypto enthusiasts speculating on Schwartz’s potential motives and considerations.
Funny story: I actually may have to sell some more Ripple stock soon in order to buy more Ripple stock. I have some options to buy Ripple stock that I've had for so long, they're close to expiring. But exercising them has a huge tax cost.
— David "JoelKatz" Schwartz (@JoelKatz) April 23, 2024
One community member even opined that it was easier to sell Ripple shares at any time and in exchange for XRP. In response to questions concerning his preference, Schwartz emphasized the difference in liquidity between XRP and equities of privately held companies, highlighting the better liquidity of the former.
Ripple IPO Ambition Growing
Ripple CEO Brad Garlinghouse has been vocal about his company’s plans for a long time. In January, Garlinghouse revealed in an interview that Ripple was exploring an IPO outside the United States. Although the CEO said the company has no time frame yet for the planned IPO, he emphasized that the move follows perceived hostility from the US Securities and Exchange Commission (SEC).
The regulator sued Ripple and two of its executives, including the CEO, in 2020, years after the blockchain payment firm conducted its Initial Coin Offering (ICO), citing unregistered securities and violations of federal laws.
In 2023, the court ruled in favor of Ripple and declared its associated XRP, to be non-security when traded on exchanges. The lawsuit is almost over right now. The SEC is expected to file its response brief under seal next month, after which there will be a meeting to address redactions. Subsequently, a redacted version of the response brief and any non-confidential supporting exhibits will be submitted publicly.
With talks with investors continuing and Ripple valued at an astounding $11 billion, expectations for the company’s future IPO plans are growing. However, some experts think that Ripple’s IPO will put an end to the inherently speculative nature of XRP. Some claim investors of XRP will be upset, thus leading to low investment in the cryptocurrency.
At the time of writing, XRP is trading at $0.5344, with market capitalization and trading volume standing at $29.4 billion and $1.3 billion respectively.
