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Hodor

Scenario: Ripple Goes Public

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On 9/8/2019 at 10:22 AM, LiquidGoat said:

So the 200+ banks on ripplenet dont receive a service?

Great blog @Hodor, would only critisise the assumption that MGI are able to save money and thrive...we don't know yet, but i'm also hopeful :)

Great question. What is the cashflow per month to Ripple from users of ripplenet?

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12 hours ago, Hodor said:

1. Public investors want a high share price.

2. Part of share price is the valuation of the company

3. A huge part of Ripple's valuation is XRP

4. Ripple has stated - and has done - sales that are conservative

5. Ripple wishes to not impact the free market of XRP

6. Decreasing or ceasing programmatic sales meets this goal

7. As long as other means of financing are available, then programmatic sales can be eliminated

8. The market for XRP will react positively, increasing demand - and interest - in XRP

9. As the value of XRP rises, the value of Ripple then rises

10.  As the value of Ripple rises, then the value of Ripple's public shares will rise.

All 10 points take place on earth.  :D

And also, I could definitely be mistaken; but I think additional financing options are a good thing - for Ripple and for XRP owners. 

If the company took on reasonable debt for financing, it would make their capital structure a hell of a lot more efficient. Increases cash flow through the use of a tax shelter while not having to recognize XRP sales as income...Plus they would be able to hedge their XRP position through the use of futures not too dissimilar from airlines hedging fuel costs.

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By going public a company loses control, all their decisions have to keep share holders in mind. 

There would be no reason for ripple to go public, they have buckets of funding and are on a growth cycle, companies should go public when they stop growing and there end goal is complete. 

Right now going public would be a very stupid thing for the company to do. 

Edited by Theone01

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Okay, I finished my own homework and got around to reading your piece.....a few things do come to mind.

The best time to go public would be AFTER XRP finds some traction and gets to a more realistic price point. Because, as of now, it is true that many investors would sell XRP to buy Ripple shares. That's a real concern. I'd hate to see that from my own investor's perspective. It doesn't have to moon. It just needs to get to dollar land.

Secondly, I do have some worries about institutional buyers, and especially banks buying Ripple stock to get control of XRP. It's a fairly unique situation, that I can't fully see through with clarity. Maybe I'm full of it. Dunno, though. Did I say I don't trust the banksters to do the right thing?

I'd expect Ripple to raise MORE than 5 Billion...ten maybe, in the first public offering. That wouldn't be the end of it if they fill the niche they're going after. They could go back to the well.

Buying Moneygram was genius in my view. But that's another reason to wait. It will prove the use case and make the banks get off their dinosaur butts. If the commercial banks really wanted the tech to succeed, we'd have regulatory clarity already. The lack thereof smacks of a desperate play for time. They're trying to figure out what they want to do. Moneygram sets a timer.

Banks have held the government hostage for a long time now. They get what they want...or else they pull the plug and let the credit markets, which have been unstable for a couple of decades, implode.

 

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16 minutes ago, dr_ed said:

Okay, I finished my own homework and got around to reading your piece.....a few things do come to mind.

The best time to go public would be AFTER XRP finds some traction and gets to a more realistic price point. Because, as of now, it is true that many investors would sell XRP to buy Ripple shares. That's a real concern. I'd hate to see that from my own investor's perspective. It doesn't have to moon. It just needs to get to dollar land.

Secondly, I do have some worries about institutional buyers, and especially banks buying Ripple stock to get control of XRP. It's a fairly unique situation, that I can't fully see through with clarity. Maybe I'm full of it. Dunno, though. Did I say I don't trust the banksters to do the right thing?

I'd expect Ripple to raise MORE than 5 Billion...ten maybe, in the first public offering. That wouldn't be the end of it if they fill the niche they're going after. They could go back to the well.

Buying Moneygram was genius in my view. But that's another reason to wait. It will prove the use case and make the banks get off their dinosaur butts. If the commercial banks really wanted the tech to succeed, we'd have regulatory clarity already. The lack thereof smacks of a desperate play for time. They're trying to figure out what they want to do. Moneygram sets a timer.

Banks have held the government hostage for a long time now. They get what they want...or else they pull the plug and let the credit markets, which have been unstable for a couple of decades, implode.

 

Im behind the loop obviously.. did Ripple buy moneygram??

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19 hours ago, Theone01 said:

companies should go public when they stop growing and there end goal is complete. 

I'll have to completely disagree with this. 

The entire point of 'going public' is to access additional capital for additional growth.  IMO going public would be a great thing - it would enhance capital by factors that make it very attractive. 

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3 hours ago, Hodor said:

I'll have to completely disagree with this. 

The entire point of 'going public' is to access additional capital for additional growth.  IMO going public would be a great thing - it would enhance capital by factors that make it very attractive. 

Ripples has buckets of money, going public now would be a terrible thing. 

Patrick Collison on stripe an potential Stripe IPO in 2017

----  Collison also pointed out that an IPO could make it more difficult for a company like Stripe to take calculated risks and moving at its own pace.

“Being a public company certainly doesn’t stop you from taking a really long-term time horizon, but it does make it more difficult,” he said. “From our standpoint, becoming a public company makes sense when you’ve reached some point of stability, some plateau — [when] you’ve done the stuff that you at least initially set out to. And we haven’t. We’re still very early in this trajectory that we first established. And because we work with startups, they themselves have lengthy trajectories, so this is just going to have to be — when you’re building infrastructure — long time horizons are involved.”

 So if you’re hoping to buy Stripe stock, don’t hold your breath. It could be a while yet. -------

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4 hours ago, Hodor said:

I'll have to completely disagree with this. 

The entire point of 'going public' is to access additional capital for additional growth.  IMO going public would be a great thing - it would enhance capital by factors that make it very attractive. 

Main point of going public is not to get more capital but to provide liquidity for early investors, those wanting to cash out. They have not seen a dime, which is good. Every single $ from XRP sales has been plowed back into the ecosystem, not investors pockets. So far initial investors have been patient. No reason they can’t wait another 12-24 months.......Additional capital for growth, if needed, can be gotten other ways.....Ripple has already “raised” its initial project stash. No need for more. We are now in that magical post vision pre realization phase. Full of doubt and worry yet tasting a true tangible result that is historically hard to believe but actually makes sense. A very rare fact pattern. 

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8 minutes ago, Brokedownpalace said:

Main point of going public is not to get more capital but to provide liquidity for early investors, those wanting to cash out. They have not seen a dime, which is good. Every single $ from XRP sales has been plowed back into the ecosystem, not investors pockets. So far initial investors have been patient. No reason they can’t wait another 12-24 months.......Additional capital for growth, if needed, can be gotten other ways.....Ripple has already “raised” its initial project stash. No need for more. We are now in that magical post vision pre realization phase. Full of doubt and worry yet tasting a true tangible result that is historically hard to believe but actually makes sense. A very rare fact pattern. 

question is.. if they do go public, what would be the cost of one share after institutional investors get their hands on it? if one share is over $10, it would be too expensive for most people to even afford.

more than likely Ripple will go public within the next 5 years

Edited by XRPto50dollars

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On 9/8/2019 at 9:43 PM, Hodor said:

1. Public investors want a high share price.

2. Part of share price is the valuation of the company

3. A huge part of Ripple's valuation is XRP

4. Ripple has stated - and has done - sales that are conservative

5. Ripple wishes to not impact the free market of XRP

6. Decreasing or ceasing programmatic sales meets this goal

7. As long as other means of financing are available, then programmatic sales can be eliminated

8. The market for XRP will react positively, increasing demand - and interest - in XRP

9. As the value of XRP rises, the value of Ripple then rises

10.  As the value of Ripple rises, then the value of Ripple's public shares will rise.

All 10 points take place on earth.  :D

And also, I could definitely be mistaken; but I think additional financing options are a good thing - for Ripple and for XRP owners. 

I have a hard time understanding how people dont see what is happening?

This is big sh!t.

Edited by KarmaCoverage

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46 minutes ago, KarmaCoverage said:

I have a hard time understanding how people dont see what is happening?

This is big sh!t.

Can you elaborate on the big **** you feel is happening?

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