Coin Edition -
- Pro-XRP lawyer John Deaton has praised Ripple for backing the XRP token.
- The lawyer raised concerns that Ripple might abandon XRP as a potential IPO looms near.
- Also, XRP has been recognized by Dubai as a digital asset.
Pro-XRP lawyer John Deaton is all praise for Ripple amidst concerns about the company pivoting from XRP. The lawyer tweeted that Ripple has a fiduciary duty not to abandon XRP, even as the firm’s Liquidity Hub does not feature XRP as one of the digital asset options. Deaton stated the firm’s strong valuation after its A, B, and C funding series and a potential IPO give further incentive for Ripple to not move away from XRP.
As I’ve said for more than 3 years, Ripple is not going to abandon #XRP. It has a fiduciary duty not to. Do the math: 2015: Series A valuation – $128M2016: Series B valuation- $410M2020: Series C valuation- $10B2022: Series C Buyback valuation – $15BLast year, Ripple… https://t.co/xnMUqjcQS8— John E Deaton (@JohnEDeaton1) November 2, 2023
Members of the XRP community raised concerns that Ripple may abandon the token as XRP does not feature in its Liquidity Hub product. Worries about the XRP token’s status rose even as regulatory clarity around it improved. But Ripple said in a blog post that it will continue backing XRP and will feature it in the hub as soon as it has more regulatory clarity in the U.S.
Deaton allayed concerns, stating that Ripple’s shares trading at a valuation lower than its 2022 valuation of $15 billion is enough reason for the company to back XRP. Ripple’s valuation has climbed steadily and reached $15 billion in 2022, up from its $10 billion valuation in 2020. With a possible IPO on the cards, Deaton said the firm could be in for a windfall as it holds 48 billion to 50 billion XRP. He also stated the company’s share buyback in 2022 at a 50% premium as further evidence of its commitment to XRP.
Deaton’s praise for Ripple and CEO Brad Garlinghouse comes amidst XRP gaining regulatory clarity worldwide. The Dubai Financial Services Authority (DFSA) became the latest regulator to recognize its digital asset status. The DFSA approval comes as Ripple awaits the verdict in its case against the SEC regarding the security status of XRP.
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