Peter Smith
Ripple's top tech guy David Schwartz just cleared the air about that wild $6 billion acquisition offer everyone's been talking about. Turns out, his social media post about Ripple trying to buy Circle (the company behind USDC) was nothing more than a joke that got way out of hand.
Ripple's Chief Technology Officer David Schwartz has come clean about his social media antics, admitting he was just messing around when he posted about a potential $6 billion bid for Circle. The whole thing blew up online, and now he's having to explain that it wasn't serious business talk - just some crypto humor gone wrong.
Ripple (XRP) Boss Tries to Clean Up Social Media Mess
So here's what actually went down. David Schwartz, who's basically Ripple's head tech wizard, posted something on social media that got everyone thinking Ripple was throwing around massive money to buy Circle. But then he had second thoughts and deleted the whole thing.
"I meant it as a joke but deleted it because I was afraid some might take it seriously," Schwartz said, probably realizing that crypto Twitter doesn't always get sarcasm.
This whole drama comes right after Bloomberg dropped some serious news back in April - apparently, Circle actually did turn down a real $5 billion offer from Ripple. And get this: Coinbase was apparently in the mix too, trying to snag Circle for themselves. Talk about a bidding war that never really happened.
The rumor mill has been absolutely wild lately. Some people were throwing around crazy numbers, claiming Ripple was ready to drop $20 billion on Circle. But Ripple's CEO Brad Garlinghouse quickly shut that down at some industry event, basically saying "We definitely never offered $20 billion to Circle." Smart move, because $20 billion would be absolutely insane money for any crypto company right now.
Circle's Hot IPO Makes Ripple (XRP) Deal Look Like Ancient History
While everyone's been gossiping about these supposed acquisition talks, Circle has been busy doing their own thing - and it's working out pretty well for them. They've basically told all potential buyers to take a hike because they're going public this week instead.
Here's where it gets really interesting: Circle's IPO is absolutely crushing it. We're talking about being oversubscribed by more than 25 times, which is basically Wall Street speak for "everyone wants a piece of this." The company is shooting for a $7.2 billion valuation, which isn't too shabby for a stablecoin company.
Even the big money players are getting involved. IBIT, which is a massive asset management company, wants to grab a 10% chunk of Circle's IPO. That's some serious institutional backing right there.
Bloomberg just reported that Circle priced their IPO at $31 per share, which is way higher than what they originally thought they'd get. That's what happens when demand goes through the roof - companies can basically name their price.
What This All Means for Ripple (XRP) and the Crypto World
Now that the dust is settling, this whole situation tells us a lot about where things are heading in crypto land. Circle's decision to go the IPO route instead of selling to Ripple or Coinbase shows that some companies think they can make more money staying independent and tapping into traditional markets.
But here's the catch with Circle's business model - they're pretty dependent on what the Federal Reserve does with interest rates. The company makes money from the interest on all that cash backing up USDC tokens. If the Fed cuts rates by 150 basis points through 2026 (which is totally possible), Circle could actually start losing money. That's a pretty big risk for investors to think about.
For Ripple and XRP holders, this failed acquisition attempt might actually be a blessing in disguise. Instead of dropping billions on Circle, Ripple can focus on what they do best - making cross-border payments faster and cheaper. They're still fighting for regulatory clarity in the US, and that battle is probably more important than any acquisition right now.
The bigger picture here is that stablecoins are becoming legitimate business. Circle going public is huge validation for the entire crypto industry. It shows that traditional investors are finally taking digital currencies seriously, which could be great news for everyone in the space, including Ripple and XRP.
What's really wild is how fast things move in crypto. One day everyone's talking about massive acquisition deals, the next day it's all just social media jokes and IPO success stories. But that's crypto for you - never a dull moment, and always something new around the corner.
Peter Smith
