Recent reports indicate that Ripple, the company behind XRP, is considering issuing shares through an initial public offering (IPO). While rumors about this have been circulating for some time, the first facts appear to support these revelations.
Ripple launches major recruitment drive
Ripple recently published a recruitment announcement for the position of senior manager of shareholder communications. This person would be tasked with maintaining a dialogue with both current and potential investors.
The job description reads that the role involves direct communication with shareholders and the development of strategies tailored to key events, such as mergers, acquisitions or so-called “liquidity events.” The latter attracts particular attention, as it is a term particularly associated with initial public offerings (IPOs).
What specific tasks await the future manager? The job announcement indicates the need to create presentations, fact sheets and other materials to inform investors about Ripple’s business prospects and financial performance. It’s hard to resist the impression that these are typical duties that prepare a company for the IPO process.
In addition, the person in this position would maintain the shareholder database and handle quarterly updates. These are standard activities in a listed company with external shareholders.
From words to actions
Although Ripple has not announced official plans for an IPO, CEO Brad Garlinghouse expressed the view that the IPO would become real “once we finish the court case with the SEC.”
In recent weeks there had been speculation that Ripple would declare its new path at a high-profile conference in New York. Unfortunately, it turned out that these were only unconfirmed rumors.
Final decisions on Ripple’s possible IPO and the form it would take remain in the realm of conjecture. However, the fact that the company is looking for a specialist to contact investors raises reasonable suspicions that something is brewing at the headquarters of this major cryptocurrency institution. We eagerly await the development of this story.
XRP’s calm response
Despite numerous, and positive, reports on Ripple and XRP itself, the token’s price seems to be reacting very sluggishly. It is possible, however, that this is merely the calm before the storm. This theory is fueled by the fact that XRP is successively beating all relevant moving averages. At the time of writing this text, the token is measuring itself against the 100-day SMA (yellow line). In doing so, it has beaten the convergence of the 200-day SMA (green line) and the 200-week SMA (blue line). The 50-day SMA (red line) was also left behind. It is worth mentioning that the jumping of these resistances took place over a period of only 6 days. The price of XRP thus reached the level of $0.58. This is a local horizontal price barrier, the breaking of which has the right to result in much steeper movements on the chart.