XRP army drives bumper sales in Ripple stock despite SEC probe

Accredited investors are falling over themselves to grab pre-IPO equity in budding cryptocurrency unicorns like BlockFi, Dapper Labs, and Kraken, according to Linqto. This firm buys equity in young tech firms before hitting the public markets. But out of a crypto-heavy basket of unlisted company shares, Ripple Labs is the stock Linqto users buy the most.

XRP army drives bumper sales in Ripple stock despite SEC probe

According to Linqto, a company that buys shares in fledgling tech companies before going public, accredited investors reduce their self-worth to gain pre-IPO equity in the coming weeks. They are budding cryptocurrencies like BlockFi, Dapper Labs, and Kraken.

But among a basket of unlisted company stocks, Ripple Labs, the creator of the XRP token, is the one that Linqto users buy the most.

“We don’t act like a broker, but rather we put our money upfront and buy pre-IPO tech company shares from early founders, investors, and employees that need to liquidate shares for whatever reason – that might be to buy a house or send a kid to college,” Nick Burrafato, director of digital asset sales at Linqto, said in an interview.

“We also retain ownership of a percentage of every investment we make until the company exits,” he said.

More than $50 million in private equity in Ripple Labs has been sold since Linqto launched two years ago, Burrafato said. And that’s despite the crypto company’s legal disputes with the US Securities and Exchange Commission (SEC).

Ripple has long made clear its intention to go public. In January 2020, CEO Brad Garlinghouse said the initial public offering was a “natural evolution” for the company, hinting that the listing could happen later in the day. Following the SEC action against Ripple Labs in December 2020, he said the company would wait until the matter was resolved before going public.

“We were selling Ripple shares long before the SEC case,” Burrafato said. “Many of our members hold digital assets, and they were emboldened by this case with the SEC and decided they wanted to have a piece of Ripple equity and XRP.”

Linqto has a longstanding agreement with trading platform Uphold to allow users to pay for their chosen portion of private equity using cryptocurrencies, including XRP, which has a significant presence on Uphold.

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