Ripple, the third most capitalized cryptocurrency has been embroiled with a lot of controversies mainly due to centralization of the operations of the company behind it.
The Ripple CEO, Brad Garlinghouse recently announced that the company is going public with an initial public offering. This may be good news for some investors but experts are warning that this could be a mistake considering that most holders of XRP are speculators.
Ripple is already involved in several class action lawsuits due to the sale of its tokens through initial coin offerings. There have been warnings that going for an IPO would bring down the enthusiasm of most XRP investors.
The host of Boom Bust, Christy Ai reacting to the proposed IPO said,
“Right now, half the people at XRP they are not using it for the actual utility, they are holding it like an investment. Back when it ballooned to $3, or even now when it’s at $0.22, that value as a utility token, it’s not worth $0.22. So we’re expected to see a major devaluation even though it does have a utility purpose, he said in a recent show.”
Though the company has not definitely fixed a date for the proposed IPO, it is left to be seen the effect it would have on the XRP token.