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How to Invest in Ripple IPO

Word of Ripple's rumored IPO has caused a stir in the market. Some of this enthusiasm flows from the continued legal troubles facing Ripple and its uncommon place in terms on cryptocurrencies. But what exactly does investing in Ripple's IPO mean, and how can investors get ready for it?

Understanding Ripple and XRP

Ripple Labs is a technology company founded in 2012 providing solutions for digital payment networks within its flagship product known as RippleNet and the specific cryptocurrency based remittances solution that utilizes XRP. 

Rather than merely providing a regular payment platform, RippleNet uses blockchain technology in order to both improve all available transparency and security of payments done online. This feature makes it an important player in the fintech world as a consequence of which money transfers can be done across borders making this whole process completely frictionless.

RippleNet, the Ripple Network XRP, a digital asset created by Ripple is used to facilitate transactions on this network and aims at providing cheaper cross border payments in settlement times many times lower than traditional methods. This functionality has placed XRP among the largest cryptocurrencies by market cap, despite legal obstacles.

The Ripple IPO: What We Know

Ripple has been teasing an IPO for a while now. An Initial Public Offering (IPO) represents the shift of Ripple from a private company to one that is publicly held—it can raise money by offering shares for sale. 

Since Ripple would get more funding with this action, it could help the company grow its operations or improve its technology.

Nevertheless, there is no confirmed date as to when Ripple may actually carry out an IPO. The company has also been busy settling its legal troubles with the (US) Securities and Exchange Commission (SEC). 

Last December, the SEC brought a lawsuit against Ripple claiming that its sale of XRP was an unregistered securities offering. Ripple has long stated that XRP is a currency, not a security, and thus falls outside the SEC's purview. This lawsuit could delay and/or lessen Ripple's IPO exit score.

Why Invest in Ripple's IPO?

There are a number of advantages that might come with investing in Ripple's IPO:

  1. Market Position: Ripple has long been a player in the digital payments and is building momentum as time progresses. This credibility and the market of possibilities made possible by investments in financial institutions accentuate its brand.
  2. Technological Edge: Ripple has a tangible use case for using blockchain technology for cross-border payments. Given these benefits and the growing demand for efficient and cost-effective transaction methods among business entities and consumers, you can expect such solutions to be more widely used across various sectors.
  3. Legal Clarity: Ripple has some ongoing legal troubles, which, if resolved in Ripple's favor, could provide them with regulatory clarity that will help push more investors to buy shares of the company.
  4. Growth Potential: This gives the company more room to raise additional capital which could help it grow faster, expand into new markets and develop new products. It is this growth that has the potential to convert into enhanced shareholder value over time.

Risks to Consider

Investment in Ripple's initial public offering (IPO) carries some risks despite the potential rewards:

  1. Legal Uncertainty: The already long SEC investigation presents a major overhang. An unfavorable ruling could mean the imposition of significant fines, limitations on operations or other penalties to Ripple's business and share price.
  2. Market Volatility: As with all cryptocurrencies, XRP remains highly speculative and complicated. The volatility of XRP's price could impact Ripple financial health and investor confidence.
  3. Regulatory Risks: Ripple stands to face more challenges should it win its case against the SEC. The regulatory environment concerning cryptocurrencies is still developing and regulation, new rules or further interpretations of existing legislation could affect
  4. Competitive Pressure: The FinTech and cryptocurrency ecosystem is extremely competitive with so many parties competing for market share. For now, it is clear that Ripple will always have to innovate or be left behind in a rapidly changing industry.

Steps to Invest in Ripple's IPO

If you want to invest in Ripple IPO, here are the steps that you can follow:

  1. Stay Informed: Stay up-to-date with the news of Ripple and its legal matters. For a source to be deemed reliable it would have to either come from a financial news website, an official communication involving Ripple or even at some of the more trusted cryptocurrency oriented sources.
  2. Open a Brokerage Account: This brokerage account will be needed if you want to get shares in an IPO. Select a broker that provides access to IPOs and meet all eligibility criteria.
  3. Research the IPO: Know everything about the company whose stock you want to invest in, like whether it has income reports, what its terms are, and how to evaluate its financials before buying. This includes the official IPO prospectus, which tells you everything there is to know about both the company and its offering.
  4. Place Your Order: When the IPO opens, you can place an order through your broker to buy shares. Please note that IPOs may be oversubscribed, and orders will only be filled to the extent SOFI has available shares.
  5. Monitor Your Investment: Once you have bought the stocks, keep tab of your investments periodically. After all, be sure to keep an eye on Ripple performance and market trends for any such developments that could alter the respective companies stock price.


Ripple could be a good IPO stock to invest in with its promising market presence and technology. But the potential benefits need to be balanced against what are still very real legal questions and overall market volatility. 

By being informed by this and other channels and deep-diving into the available documentation, investors will be able to make a better call about whether or not they should participate in Ripple's IPO.

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