It’s time for Ripple, the company behind the XRP cryptocurrency, to expand its business model by acquiring or merging with other companies.
On CNBC, a report stated that this business was actively looking to acquire other startups of the highest caliber in order to help fuel its own growth.
Since its inception, Ripple has made a number of acquisitions in the merger and acquisition (M&A) space, including Trianglo and Algrim. When it comes to growth, the company hasn’t slowed down despite a well-publicized battle with the Securities and Exchange Commission (SEC).
You may have heard that the SEC is suing Ripple and two of its top execs in December 2020 for allegedly issuing and selling unlicensed securities in the form of XRP, which is the cryptocurrency that Ripple uses.
Ripple CEO Brad Garlinghouse told CNBC that the company’s financial position is excellent. According to him, there will be a lot of mergers and acquisitions in the crypto industry in the near future.
It is Ripple’s goal to create a more manageable ecosystem for developers to create projects around XRP, which in turn encourages businesses to use the cross-border payments token.
According to some prominent cryptocurrency analysts, XRP’s performance has been disappointing despite positive developments in the SEC lawsuit and notable deals in the Asian cryptocurrency market.
In the top ten cryptocurrencies, XRP is the only one that hasn’t broken its all-time highs from the 2017-2018 bull market. Cardano’s ADA recently overtook it as the second largest cryptocurrency by market cap. In the cryptocurrency market, XRP has a market capitalization of around $20.1 billion, making it the seventh-largest coin after ADA.
It’s possible that an SEC victory and more large-scale XRP deals will significantly boost the coin’s upside potential, but this isn’t universally agreed upon.