by Karim Nurani, Linqto CSO
Since its 2012 launch, Ripple triggered a revolution in the Crypto-Fintech Industry. Instead of joining and adapting to the existing blockchain environment, Ripple created its own ecosystem within the financial industry. Being the third largest crypto by market cap is only one side of the coin. The other side spells the global payments network of the future, with real-time settlements, end-to-end transaction visibility and outrageous affordability. Now investors can become a part of it, in a few clicks.
What Sets RIPPLE Apart?
1. Ripple’s native cryptocurrency called XRP is branded the “Bitcoin of banks,” distancing itself from other “traditional” cryptocurrencies. Ripple did not fight against big banks or plead for their redundancy. Ripple partnered with them for the sake of seamless transactional speeds. And more than 300 banks, stock exchanges for digital assets, and payment service providers accepted the challenge by cooperating through Ripple’s xCurrent software.
Ripple’s partners include big names from around the world: American Express, Western Union, Moneygram, Mitsubishi UFG (Japan’s largest bank), Swedish SEB Bank, UBS, UniCredit, BBVA (Spain’s 2nd largest bank), Yes Bank and Axis Bank (from India).
2. Ripple has great control over its own cryptocurrency value as XRP makes a consistent part of Ripple assets.
XRP Sales by Ripple (source: theblockcrypto)
3. Ripple was from the start, more pragmatic and practical than its crypto counterparts. In addition to its own cryptocurrency, XRP, Ripple developed, operates, and permanently improves a global blockchain-based platform that allows individuals to exchange money regardless of bank or location. The real-time financial settlement services network has been adopted by many organizations by stabilizing a token’s price and volatility, and by reinforcing the trust in their business backbone (which also includes Ripple shares).
Cumulative XRP sales by Ripple (source: Yahoo Finance)
From Crypto Markets To Equity Markets
For cryptocurrency supporters who are already familiar with Ripple and XRP, now is the best time to consider a longer-term investment in the company. Every recession or depression is the perfect long-term strategy for buying stocks. Perceptive investors buy stocks due to a higher potential return on investment over the long term along with the advantage of stake ownership in a company.
Before buying stocks, investors should carefully take certain things into consideration and pick the right shares by stability, trends in the company’s earnings growth, debt-equity ratio, dividends, management, and relative strength in the industry.
Being investors in equity markets is not easy, but Ripple shares could be an excellent choice for:
- Cryptocurrency enthusiasts who want to diversify their crypto-based portfolio;
- Day traders who need to balance XRP’s high volatility with longer positions;
- Thematic investors who follow the lead of mainstream financial institutions.
Why RIPPLE Equity?
1. Ripple is a cross-breed that has the stable backing of a successful company. It helped extremely risk-averse institutional investors to not just “wake up” to crypto, but it became their tool of choice. 300 financial institutions in up to 50 countries across 6 continents currently use Ripple’s back-end infrastructure system because it’s a significantly simpler, faster, and a much more cost-effective alternative to their own (outdated, slow) payment processing and clearing systems.
2. Unlike XRP, Ripple shares are more stable and will not jump double digits in a day.
3. Gateway access. Only qualified (accredited) investors can purchase Ripple equity in the private market.
Ripple Enterprise Value (source: sharespost).
Ripple stocks are a great investment opportunity due to the Ripple business DNA based on securing disruptive entry into market sectors where legacy structures and institutional barriers create frictions to entry. Why is it the perfect time to invest in Ripple, THE COMPANY, and not only their cryptocurrency? Here are the 3 main reasons:
1. In December 2019, Ripple was valued at a $9.8B under rather conservative terms, while raising $200M in Series C funding, with a price per share of $61.49.
2. As an initial public offering (IPO) was a “natural evolution”, in January 2020, Ripple announced a stock market launch within 12 months. Currently, you can invest in an exclusive pre-IPO SPV of Ripple on the Linqto Platform.
What Do The Numbers Say?
To make sure your investments match your attitude to risk, when investing in unicorns, first, take a look at their balance sheets – do they have what it takes in terms of liquidities and assets to survive the current crisis? Ripple for instance doesn’t just have a tempting entry price, but Ripple stocks are backed by a strong $250M balance sheet and, most importantly, their proprietary cryptocurrency reserve.
Since Ripple’s clearing and settlement mechanisms are partly based on their in-house currency, the cryptocurrency amount featured on their balance sheets as opposed to what’s traded on the market, is worth $5B.
Therefore, with $250M in cash and another 5B XRP owned by Ripple, the company, you’re looking at a robust financial position – a rare occasion that sophisticated investors couldn’t afford to miss.
A unique, double benefit of owning both Ripple shares and the XRP currency is that an increase in the value of XRP translates into a rise in the share value, fortifying your position. So far, the company has made major progress on multiple fronts, striking partnerships with major financial institutions and banks, while raising a total of $293.8M in funding over 13 rounds.
You Can Become a Part of RIPPLE’s Future
As cryptocurrencies swept the globe, Ripple revolutionized financial transactions, particularly the international multi-currency payments. According to a McKinsey study, 60% of all cross-border B2B transfers need a15-20 minutes of manual intervention. Ripple completes a transaction in a few seconds.
In a time when most processing systems and financial markets are being impaired, Ripple’s blockchain has the resilience needed for processing large transaction volumes quicker and safer than ever before. The close cooperation with names like Santander or Bank of America, which integrated Ripple’s payment network into their systems, motivates Ripple to invest constantly in their proprietary network while continuing to secure as many successful agreements with Fortune 100 financial brands across the globe.
Even if XRP and other cryptocurrencies might not be the “digital gold” we were all hoping for, Ripple’s ground-breaking payment system works on distributed ledgers which makes it extremely secure and always capable of processing payments at a very high speed. This is Ripple’s greatest advantage that turns its stocks into a “safe-haven investment” during times of extreme market uncertainty, and beyond.
Ripple, THE COMPANY, will continue to provide an invaluable service for inter-bank settlements, which is one of the best use cases for blockchain technology. Their future is equally promising and exciting. Join their way of revolutionizing the way the world moves money via the Linqto Investment Platform.