On Aug. 18, Ripple closed a bond sale in an upsized $275 million private placement of senior unsecured notes. The cash is intended to fund the operation and expansion of Ripple Prime, the company's relatively new institutional brokerage arm. XRP (CRYPTO: XRP), for its part, was coasting near $1 that week, one of its weakest weekly closes in nearly two years.
Since then, XRP's price has surged by around 52% thanks to strength in the wider crypto market, but that still leaves its holders with an uncomfortable thought. Ripple raised real money while the coin went nowhere, suggesting that XRP's fortunes are, at least in the market's eyes, distinct from those of its issuer. So, is there actually a way that Ripple's raise can end up helping XRP down the line, or not?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The senior unsecured notes issued by Ripple are normal corporate debt, and not anything that could be considered bearish for XRP, as it's a coin ****** ociated with a blockchain, and the XRP Ledger (XRPL) has no balance sheet that can be affected by Ripple taking on liabilities.
But investors should take note of the financing approach that Ripple chose.
#Crypto #flashing #senior
Since then, XRP's price has surged by around 52% thanks to strength in the wider crypto market, but that still leaves its holders with an uncomfortable thought. Ripple raised real money while the coin went nowhere, suggesting that XRP's fortunes are, at least in the market's eyes, distinct from those of its issuer. So, is there actually a way that Ripple's raise can end up helping XRP down the line, or not?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The senior unsecured notes issued by Ripple are normal corporate debt, and not anything that could be considered bearish for XRP, as it's a coin ****** ociated with a blockchain, and the XRP Ledger (XRPL) has no balance sheet that can be affected by Ripple taking on liabilities.
But investors should take note of the financing approach that Ripple chose.
#Crypto #flashing #senior
5 days ago
