Ripple's $500M Stock Offering Highlights Wall Street's Approach to Crypto Risk, According to Report
Investment in Ripple: Wall Street firms like Citadel Securities and Fortress Investment Group invested in Ripple's $500M share offering, valuing the company at $40B, with protections against crypto volatility.
Investor Protections: The deal allows investors to sell shares back to Ripple for a guaranteed 10% annual return after three or four years, or a higher 25% if Ripple opts to buy back shares.
Ripple's Asset Value: Approximately 90% of Ripple's net asset value is derived from its crypto token, XRP, which has seen a decline of about 15% since the share deal announcement.
Market Confidence and Caution: The structure of the investment reflects Wall Street's confidence in the future of crypto while also acknowledging the inherent risks associated with its volatility.
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