Blockchain payment network Ripple launching an initial public offering (IPO) could, in fact, devalue the cryptocurrency in which it holds a majority pale.

According to several market participants interviewed by Cointelegraph over the weekend, Ripple going public has potential implications for the fate of altcoin XRP.

Ripple IPO: boom or bust for XRP?

The visitor'due south CEO, Brad Garlinghouse, last calendar week hinted an IPO may occur within the adjacent twelvemonth.

In the face of flagging XRP prices, the impetus backside a major fundraising upshot is articulate for commentators, but whether it would reverse the token's fortunes is not at all clear.

"Though Ripple is making inroads, it is yet to disrupt the global money transfer system in a major mode," regular Cointelegraph contributor and analyst Rakesh Upadhyay said. "Initially, afterwards the IPO, the marketplace participants might be patient but they will soon seek results. When the results don't come through, it will hurt prices."

For Upadhyay, Ripple'south lack of progress despite its various deals with major banks and other businesses means harder times are still to come.

A telltale sign that liquidity remains problematic is Ripple's mass selloffs of XRP. As Cointelegraph reported, these were bigger in 2022 than ever before. Fifty-fifty the IPO announcement failed to move XRP/USD significantly higher.

Upadhyay added:

"A sharp fall in price will arrive difficult for Ripple to raise money. It has been selling tokens, which shows that it is not making plenty money to fund its operations. But unlike earlier, later the IPO, Ripple will also not exist able to sell tokens without announcing beforehand. When announced, this will again hurt prices."

XRP/USD 1-year chart

XRP/USD i-year nautical chart. Source: Coin360

A different kind of selloff

The idea of an IPO becoming a straightjacket for Ripple was echoed by the caput of Cointelegraph Markets Allen Scott.

For him, the IPO would exist a litmus exam for buyer appetites already under scrutiny after the XRP selloffs.

"Many run across Ripple selling XRP regularly as a recurring 'IPO' already sans shareholder rights," he said.

Scott continued:

"So this might actually injure Ripple — it would put into question not only its operational costs and business concern model of dumping on the marketplace but more than importantly, the existence of XRP."

By dissimilarity, for beau contributor and ex-eToro analyst Mati Greenspan, an IPO could let Ripple to strengthen its position vis-a-vis XRP.

"My feeling is that information technology would be positive. Additional funding for Ripple would mean less reason to sell off tokens," he summarized.

Perhaps predictably, prominent XRP investors share fifty-fifty less of the sense of foreboding. Michael Arrington, the founder of TechCrunch and hedge fund Arrington XRP Capital letter, told followers to "disregard FUD" around the IPO.

"Information technology's healthy, and awesome if/when it happens," he tweeted on January. 24 in the wake of Garlinghouse'southward announcement.