XRP buoyed by rising expectations after Ripple's fundraising

Korea Economic Daily

Summary

Ripple succeeded in raising new funds worth USD 500 million, raising its company value to USD 40 billion.
After the fundraising news, the price of XRP rebounded temporarily, and the number of newly created wallets reached the highest level in 8 months.
Ripple's management dismissed the possibility of an IPO, expressing confidence in growth and its financial structure as a privately held company.

Crypto Now

New wallet creation also highest in 8 months

Company value KRW 58 trillion… IPO possibility dismissed

When news emerged that Ripple, the issuer of the crypto asset XRP, had secured new funding worth USD 500 million, XRP also rebounded. The gains were later given up amid concerns about U.S. tech stocks, but expectations have grown that Ripple's business expansion and ecosystem strengthening will gain momentum.

According to the industry on the 9th, Ripple recently succeeded in raising USD 500 million in an investment round. Major investors include Fortress Investment Group, Citadel Securities, Pantera Capital, and Galaxy Digital. Through this round, Ripple raised its company value to USD 40 billion. When this news was reported on the 5th, XRP recorded KRW 3,512, up 5.69% in a single day domestically. It is currently trading in the KRW 3,300 range.

Since last year, after Donald Trump was elected U.S. president, Ripple has been accelerating payment infrastructure and new product expansion by taking advantage of crypto-friendly regulatory conditions. Monica Long, Ripple's president, said, "This fundraising is evidence of Ripple's sustained growth and the expansion of market opportunities," and added, "Ripple will work to enable financial institutions to lead new forms of finance through crypto assets and blockchain technology."

Despite the fundraising news, the possibility of an initial public offering (IPO) was dismissed. She said, "Ripple is not focused on an IPO. With solid financial structure and liquidity, it can continue its growth trajectory." She added, "Ripple will remain a privately held company going forward."

After news of Ripple's fundraising was reported, XRP also found renewed activity. Blockchain analysis platform Santiment analyzed, "After the fundraising announcement, XRP rose 12% from the low," and "In the past 48 hours, newly created XRP wallets reached 21,595. This is the highest in 8 months."

Yeong-min Lee, BloomingBit reporter 20min@bloomingbit.io

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