- Investors selling now may miss substantial future profit if Ripple holds an initial public offering and shares become freely tradable.
- Attorney John Deaton advises retaining claims unless immediate cash is required, as purchase terms usually benefit the buying firm most.
Cherokee Acquisition has presented a proposal to buy claims linked to Linqto Texas, LLC. This firm specializes in acquiring claims from bankruptcy and financially distressed situations.
The bidding structure uses two different pricing levels determined by claim amount. Claims exceeding $100,000 would be purchased at 70-75% of their value. Those below $100,000 would receive 65-70% of their value. Sellers gain immediate liquidity, while Cherokee assumes the risk of waiting for eventual distributions.
Attorney John Deaton explained the underlying business model of such transactions. He described how acquisition firms buy claims at prices below their anticipated future worth. These firms realize profits when the assets eventually distribute payments. For example, an initial $100,000 investment in Ripple at $40 per share might currently attract offers in the $60,000-$75,000 range.
Secondary market activity currently values Ripple shares near $100 each. The company’s most recent tender offer placed shares at $175. This suggests the original $100,000 investment could now have a theoretical value surpassing $200,000. Deaton pointed out that purchase offers generally use the original investment figure rather than current market valuation, which could mean sellers relinquish substantial future gains.
Ripple’s private shares currently cannot be readily converted to cash by investors. These securities will remain non-tradable until after a potential public offering and the expiration of the mandatory lockup period. This lack of market access creates opportunities for firms like Cherokee to provide immediate cash at discounted rates.
While the offer delivers instant access to funds, it sacrifices potential profits from a future Ripple initial public offering. Deaton recommended that investors without immediate financial pressures should retain their positions. He suggested that the transaction terms generally favor the purchasing firm over the seller in most cases.
XRP (Ripple) is trading at $3.013, reflecting a 0.51% drop in the last 24 hours after recently peaking at $3.19. Despite this minor correction, XRP has enjoyed a massive 406% yearly gain and remains up 45% year-to-date, supported by a wave of institutional interest and market speculation about ETF-based demand.
Technically, XRP has formed a bullish cup and handle pattern, which suggests a continuation to the upside if key resistance levels are broken convincingly. However, price action has recently stalled just below $3.04, a critical resistance, and RSI momentum has slightly weakened from 59 to 52, indicating a potential short-term cooldown before any sustained rally.
Key moving averages like the 200 SMA are supporting price action around $2.98, making this level crucial to monitor for any breakdowns. Oscillator and moving average summaries on TradingView currently reflect neutral sentiment, suggesting the market is in a consolidation phase, awaiting clearer direction.
In the ecosystem, news has been mixed but mostly bullish in narrative. Analyst Rob Cunningham speculated that new ETF launches could drive up to $17 billion in demand for XRP, easily exceeding its available circulating supply, which could cause a significant price squeeze.
However, there’s a contrasting bearish twist: on-chain activity has dropped significantly, with daily transactions falling from over 800,000 to around 223,000. This decline in user participation could reflect technical issues or simply market fatigue following recent highs.
ETHNews prediction: Provided XRP breaks above the $3.04 resistance level with strong volume confirmation, the price is likely to rally toward $3.45–$3.52 within the next 5–7 trading days. If, however, it fails to hold support around $2.98, a short-term retracement to $2.84 is likely before any new bullish impulse resumes.
