On October 14, a tweet from the famed XRP influencer Wrath of Kahneman (WoK) sparked important dialogue on platform X relating to the potential restructuring of Ripple in anticipation of an Preliminary Public Providing (IPO).
WoK outlined a state of affairs the place Ripple might transition its cross-border cost operations to a subsidiary to make clear cost licensing, making a distinction between the model and #XRP. This narrative deviates from earlier identifications of Ripple as solely a funds firm.
WoK’s preliminary tweet was quickly adopted by one other, portray a brighter outlook for XRP. He speculated that such a transfer might pave the way in which for XRP to evolve as a standalone entity devoted solely to advancing its cost functionalities.
Regardless of Ripple’s present US base, WoK instructed a possible abroad registration, which might provide tax advantages. He added that such restructuring may permit a funds subsidiary to independently purchase smaller remittance corporations with out necessitating a vote from Ripple’s shareholders.
Redefining Ripple-XRP Relationship Put up-IPO
In his tweets, WoK hypothesized that Ripple might distance its model from XRP by relocating its cross-border cost operations to subsidiaries post-IPO. In line with WoK, this shift would mark a considerable departure from Ripple’s former stance as a payments-centric agency.
He additionally instructed situating the subsidiary company outdoors the US to leverage worldwide tax advantages. Per WoK’s speculation, this abroad entity might function autonomously in buying smaller remittance ventures sans approval from Ripple’s shareholders.
The conjectures by WoK stirred conversations inside the crypto neighborhood, shedding gentle on the potential ramifications Ripple’s IPO and subsequent restructuring might have on XRP and its cost options improvement.