On October 14, a tweet from the famed XRP influencer Wrath of Kahneman (WoK) sparked significant discussion on platform X regarding the potential restructuring of Ripple in anticipation of an Initial Public Offering (IPO).
WoK outlined a scenario where Ripple could transition its cross-border payment operations to a subsidiary to clarify payment licensing, creating a distinction between the brand and #XRP. This narrative deviates from previous identifications of Ripple as solely a payments company.
WoK’s initial tweet was soon followed by another, painting a brighter outlook for XRP. He speculated that such a move could pave the way for XRP to evolve as a standalone entity dedicated solely to advancing its payment functionalities.
Despite Ripple’s current US base, WoK suggested a potential overseas registration, which could offer tax benefits. He added that such restructuring might allow a payments subsidiary to independently acquire smaller remittance companies without necessitating a vote from Ripple’s shareholders.
Redefining Ripple-XRP Relationship Post-IPO
In his tweets, WoK hypothesized that Ripple could distance its brand from XRP by relocating its cross-border payment operations to subsidiaries post-IPO. According to WoK, this shift would mark a substantial departure from Ripple’s former stance as a payments-centric firm.
He also suggested situating the subsidiary corporation outside the US to leverage international tax benefits. Per WoK’s hypothesis, this overseas entity could operate autonomously in acquiring smaller remittance ventures sans approval from Ripple’s shareholders.
The conjectures by WoK stirred conversations within the crypto community, shedding light on the potential ramifications Ripple’s IPO and subsequent restructuring could have on XRP and its payment solutions development.
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