Even if Ripple brought in 20% of that, which would be $1 billion, it would have a large cash reserve it would be sitting on.
Hodor then noted that with this cash, Ripple could participate in strong marketing: "With $5 billion dollars, no amount of potential marketing is out of reach, and the days of Superbowl advertisements about digital assets may be upon us."
He added that the sale of Ripple shares would also give the company more capacity to participate in more business deals and acquisitions, with Garlinghouse last year saying in an interview that acquisitions are a big focus of his company when their balance sheet is strong. This comment in the wake of Ripple
partnering with top remittance provider MoneyGram.
As to how this could affect XRP, the analyst suggested that the reserve of cash would decrease Ripple's incentive to participate in programmatic sales of XRP, which investors like Kyle Samani of Multicoin Capital may have depressed the price of the asset over the years. He added that a Ripple IPO would "accelerate the adoption of their payment processing software and its preferred digital asset," potentially presenting a bull case for the battered crypto asset, which shed 50% of its value in 2019.
