In an unexpected turn of events, Ripple Labs Chief Technical Officer (CTO) David Schwartz recently shared his belief that Ripple might have become a public company had it been established outside of the United States. Schwartz conveyed this perspective in response to a debate within the XRP community regarding why Ripple chose not to go public.
Schwartz, who had previously expressed anticipation for a Ripple initial public offering (IPO), revealed that the trajectory leading away from an IPO was unforeseen. The CTO’s remarks surfaced during a discussion with a member of the XRP community who suggested that Ripple Labs opted for the release of the XRP token as a fundraising strategy instead of pursuing an IPO.
Contrary to this viewpoint, Schwartz clarified that he never considered the launch of XRP as equivalent to an IPO. He emphasized his belief that Ripple’s path to financial success would have been through an IPO, which influenced his decision to choose Ripple stock as compensation over XRP. In a tweet, Schwartz stated, “My intention and belief was always that the way this would make money was for Ripple to IPO [sic].”
Financial expert Linda Jones, previously cited by Ripple insiders, speculated that May 2024 could be the most feasible date for Ripple to go public. Jones based her prediction on expected bullish trends in the cryptocurrency market, reduced inflation, and lower interest rates.
These recent statements from Schwartz echo the sentiment prevailing within Ripple, where executives have accused the U.S. Securities and Exchange Commission (SEC) of impeding the company’s growth. The SEC’s lawsuit against Ripple, which is anticipated to conclude next year, has been a focal point of contention. Notably, pro-XRP lawyer John Deaton has suggested that fines against Ripple may be minimal, citing the absence of fraud and the majority of XRP sales occurring outside of the U.S.
Despite these legal challenges, XRP, the digital asset associated with Ripple, experienced a notable decline in the past week. CoinMarketCap data indicates that the token has lost over 3% of its value in the last 24 hours. As of the latest update, XRP is trading at $0.5917 per token.