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38 minutes ago, mrenne_17 said:

Not in a million years.

XRP is a digital asset independent of Ripple the company. Ripple created it and still has some in their pockets, but that's it. XRP is not Ripple stock and will never be, and the XRP investors will have absolutely no role to play in an IPO of Ripple.

Agreed.. However, if there were to be an IPO and you bought 1 share out of the 160 Million Shares that are outstanding, then you would have ownership of a percentage of the stash of XRP's ripple owns plus it's other operating assets as well as it's stream of revenues.

Calculation of how much XRP's you would  theoretically inherit indirectly by owning 1 share of ripple labs the company?  

(1/160,000,000)*60,000,000,000 = 375 ripples per share.  If 1 share costs $25 USD.. that's quite a discount from today's approximate XRP price of $1 USD each.

This doesn't take into account all the other assets of the company nor it's revenue stream from operations.

 

Edited by richxrp

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10 minutes ago, richxrp said:

Agreed.. However, if there were to be an IPO and you bought 1 share out of the 160 Million Shares that are outstanding, then you would have ownership of a percentage of the stash of XRP's ripple owns plus it's other operating assets as well as it's stream of revenues.

Calculation of how much XRP's you would  theoretically inherit indirectly by owning 1 share of ripple labs the company?  

(1/160,000,000)*60,000,000,000 = 375 ripples per share.  If 1 share costs $25 USD.. that's quite a discount from today's approximate XRP price of $1 USD each.

This doesn't take into account all the other assets of the company nor it's revenue stream from operations.

 

And what's your point exactly?

Following your reasoning, if there are 160m shares, Ripple owns 60b XRP with a value of $1 each, each share would have a theoretical value of $375 at least. So it would make no sense to assume a share price of $25.

The share price would be a reflection of the assets, revenues and (future/expected) value of their XRP holdings.

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13 minutes ago, mrenne_17 said:

And what's your point exactly?

Following your reasoning, if there are 160m shares, Ripple owns 60b XRP with a value of $1 each, each share would have a theoretical value of $375 at least. So it would make no sense to assume a share price of $25.

The share price would be a reflection of the assets, revenues and (future/expected) value of their XRP holdings.

point is currently shares are very illiquid and are trading at a discount to net asset value. At IPO time, valuation is based on supply and demand not intrinsic value. At least not right away.. IPO time tends to under or over shoot... If there's irrational exubernace, then it usually overshoot.

Edited by richxrp

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4 hours ago, Foolaman said:

Will several thousand zerps be enough, or do we need tens of thousands? What do we think? I'm looking to add a couple more thousand zerps, on 6k approx at the moment.. thinking nearer 10 k would be awesome.... but people who have half that will still be in the hundred of thousand k profit in 3 years

I just buy more Zerps when I can. Its still a great deal at around $1.00 and nice watching the stash grow. I would think a 10K stash is a nice little nest egg especially if you got in early. 

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1 hour ago, mrenne_17 said:

Not in a million years.

XRP is a digital asset independent of Ripple the company. Ripple created it and still has some in their pockets, but that's it. XRP is not Ripple stock and will never be, and the XRP investors will have absolutely no role to play in an IPO of Ripple.

Making XRP a Security would be it's DEATH.  Maybe Ripple decides in the future to sell stock but it would be in the company.  That company just happens to control a large amount of XRP.  Might be a good way for Institutional investors to participate. my guess it's way too far off as it takes a lot of resources to go public and Ripple has better things to do.

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11 minutes ago, Champipple said:

I just buy more Zerps when I can. Its still a great deal at around $1.00 and nice watching the stash grow. I would think a 10K stash is a nice little nest egg especially if you got in early. 

How big is a nest egg? $1mill? ... 500k?

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Ripple going public doesn’t make sense for the current business model of selling some software to banks. At a certain point they won’t have anymore software to sell and they’ll simply maintain the network. Not much profit from an investor standpoint. 

Even if they still had a ton of XRP that’d be like investing in a coal company that only had a finite amount of coal to use. Eventually that runs dry.

Maybe if Ripple can become some sort of new age bank that lends XRP at interest to companies that need liquidity it would sort of make sense, but still, it’s not like they’re manufacturing goods and need the investment.

This is a whole different beast.

Edited by Hodlezerper

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51 minutes ago, richxrp said:

point is currently shares are very illiquid and are trading at a discount to net asset value. At IPO time, valuation is based on supply and demand not intrinsic value. At least not right away.. IPO time tends to under or over shoot... If there's irrational exubernace, then it usually overshoot.

Indeed. That's why I wrote "following your reasoning". You are comparing Ripple stocks to XRP to conclude buying Ripple stocks give you XRP for a discount. This makes no sense as indeed, the value of the XRP Ripple owns is less than the market value and by owning Ripple shares you still don't own or control any XRP. 

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11 minutes ago, mrenne_17 said:

Indeed. That's why I wrote "following your reasoning". You are comparing Ripple stocks to XRP to conclude buying Ripple stocks give you XRP for a discount. This makes no sense as indeed, the value of the XRP Ripple owns is less than the market value and by owning Ripple shares you still don't own or control any XRP. 

To be perfectly clear, I have not said owning XRP and owning ripple stock are equivalent.  They are not.

What I'm pointing out is that you can have a share of ripple's stash if you do own the stock. However, as I've pointed out you cannot easily cash out as the stock is not liquid at the moment and you have no control over XRP owned by ripple except that you do have a legal share in it.  It's the same as if you say offered a lump sum to buy enough for a controlling interest in ripple  labs from it's shareholders and then turned around and broke it up and sold it's assets separately... same concept as any takeover ..

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Quote

Perspective from Joel Katz on this topic:

On 12/4/2017 at 5:24 PM, JoelKatz said:

The numbers given in the first post are roughly accurate.

The upside of shares over XRP:

  • Ripple might earn revenue from sources other than XRP and you might get a share of that.
  • The price of shares of Ripple is low compared to the value of the proportional share of Ripple's XRP.
  • You become a shareholder of Ripple with particular legal rights.
  • Even if Ripple fails in the payments arena, if XRP succeeds anyhow, you could still benefit because Ripple holds so much XRP.
  • It's an illiquid asset, so it's possible it's very underpriced.

The upside of XRP over shares:

  • You can buy or sell with more flexibility as to time and price, adjusting your position as you see fit.
  • It's not clear how much of the value of the XRP Ripple holders will materialize as shareholder value.
  • If people think such a high discount to XRP's value is applicable to the shares now, they may continue to do so when you want to sell.
  • It's a more liquid asset than Ripple shares, so it's less likely to be very overpriced.

Summarizing them, the main issue is just that it's very hard to know what a share of Ripple stock should really be worth. There's minimal market price discovery and so many unknowns. The shares aren't very liquid, so you can't adjust your position if you change your mind. But if you're bullish on both XRP and Ripple over the long term and can qualify as a qualified investor, it's worth thinking about.

CAUTION: This is not anything specific about Ripple. But this is a general caution I always give people considering trading shares in a non-public company on a secondary market. There is a good chance that the person on the other side of the trade has inside information about the company that you don't. You will have to sign a form indicating that you accept this risk and as a sophisticated investor, you are presumed to know what you are doing.

 

 

Quote

 

Posted December 4, 2017

I don't know who is selling Ripple shares, but I suspect that sellers likely fall into three categories:

1) Early investors who are anxious to have a materialized profit on their records. Some of our investors put their money in three years ago and would like to demonstrate a cash profit on their balance sheets to help build the case that they should have larger funds investing in the space.

2) Former employees who can't afford to exercise their shares and hold them. When you leave the company, you have a limited time to exercise your vested shares or you forfeit them. This can be expensive, and there's no guarantee you'll ever be able to sell the shares. It might make sense to sell a percentage of your shares to help cover your cost of exercising the shares which can be hundreds of thousands of dollars.

3) Former or current employees who are trying to minimize risk because all their eggs are in one basket.

 

 

 

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4 minutes ago, OnlyU said:

If ripple go IPO or allow share to investor....im ******* dumping ******* xrp...........no question ask why i am dumping...

The only reason for IPO for any company is because they need to fund expansion. For a company like ripple, it wouldn't make sense since they have a cache of readily available financial resources... unless they're intending to use that cache as liquidity providers themselves and make money that way.  If not, going IPO would send up a warning flag...

Edited by richxrp

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Just now, richxrp said:

The only reason for IPO for any company is because they need to fund expansion. For a company like ripple, it wouldn't make sense since they have a cache of readily available financial resources... unless they're intending to use that cache as liquidity providers themselves and make money that way.  If not, going IPO would send up a warning flag...

If this IPO happen....i guaranteed million of xrp will floor the market....including mine.......and i know Mr. Garlinghouse known it too well.

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