In a recent presentationLinda P. Jones, former Wall Street financial expert and bestselling author of “3 Steps to Quantum Wealth: The Wealth Heiress’ Guide to Financial Freedom Through Cryptocurrency Investing,” details her bullish outlook for Ripple, drawing on a valuation comparison with Coinbase and the potential of XRP.
Why Ripple May Be Extremely Undervalued
Jones began by noting Ripple’s current valuation on investment platform Linqto at $7.5 billion — a stark contrast to its 2020 and 2022 valuations of $10 billion and $15 billion, respectively. These figures were determined during Ripple’s Series C buyback phases. She underscored this point by stating, “It’s amazing to me that it’s such a low valuation. That’s good for us as investors. Right?”
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The financial expert used the Coinbase Initial Public Offering (IPO) as a benchmark for Ripple’s potential entry into the market. She said that when Coinbase went public in 2021, at the height of the crypto bull market, it was valued at $86 billion. Given that comparison, Jones argued that if Ripple were to IPO with a similar market reception, it would yield an eleven-fold return based on its current valuation.
Adding a layer to his valuation model, Jones discussed Ripple’s significant XRP holdings. Ripple currently has 48 billion XRP in escrow, valued at approximately $29 billion at the current market rate of $0.61 per XRP. Jones noted, “Now, Ripple doesn’t put that on their books. They don’t value it. They don’t give any value to XRP. But they sell XRP and they make money from selling XRP.”
She proposed that future changes in accounting standards could allow cryptocurrencies like XRP to be included on balance sheets, which would further improve Ripple’s valuation: “Joe (Endoso, CEO of Linqto), and I believe that accounting standards will change and allow a company that owns a cryptocurrency to have it on its balance sheet in the future.”
With Ripple’s potential IPO valuation combined with XRP’s current market cap, Jones estimated a total valuation of $115 billion, indicating a potential 15x return on investment from current levels. Furthermore, if XRP were to return to its all-time high of $3.59 seen in 2017, she suggested that Ripple’s total valuation could reach $150 billion, which equates to a 20x increase from its current Linqto valuation.
Jones referenced historical price movements XRP’s 2017 rally saw a dramatic 60,000% surge in just 248 days. “We’re repeating that pattern now. We’re at the tip of the wedge,” she elaborated, hinting at a possible repeat of that dynamic.
Highlighting the strategic silence on customer deals and other news, Jones hinted at significant undisclosed partnerships with major corporations like Amazon and Apple that could further bolster Ripple’s position if confirmed.
“This is without the SEC deal. This is without crypto laws. This is without have an IPO announced. This is without having an ETF. This is without any disclosure about the customer agreements that Ripple has, because they’ve had to be very quiet about it. We happen to believe that they have agreements with Amazon and Apple,” Jones said.
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She concluded her presentation by emphasizing the promising value for investors who are currently or considering getting into Ripple or XRP. “So we have all kinds of blue skies ahead in terms of possibilities for XRP and Ripple. So I just want to highlight the great value that this represents for those of us who have already invested. But it’s still available on the (Linqto) platform to this day,” she concluded.
At the time of writing, XRP was trading at $0.60.
Featured image created with DALL·E, chart from TradingView.com