Ripple Labs is entering South Korea with a $300 million venture fund collaborating with VivoPower and Lean Ventures. Both firms are headquartered in Seoul and are among the country’s leading asset managers with significant institutional backing. Lean Ventures also manages government-linked entities in South Korea, providing financial assistance to policymakers. Investors are eager for Ripple’s collaboration to pump up the prices of XRP, as one of the asset managers has substantial local credibility.
Also Read: XRP Jumped From $0.50 to $3 in 3 Months: Can It Happen Again?
Can XRP Gain From Ripple’s $300 Million Venture Fund?
It is doubtful that XRP could soar in the charts from Ripple’s $300 million venture fund in South Korea, in collaboration with VivoPower and Lean Ventures. The collaboration has more to do with Ripple’s IPO equity than with its native token XRP. Institutional clients are drawn towards private equity-style investments that are more predictable, and risk management is easier. The same is not the case with digital assets, as they come with high volatility.
Therefore, the $300 million venture fund in South Korea is more appealing foremost due to Ripple and not XRP. The fintech company will also be subjected to regulatory scrutiny before an IPO launch, but the same level of review cannot be done for XRP. Investors who hope that the leading altcoin will soar in value due to this deal need to recheck their commitment.
Moreover, the launch of the fund indicates that Ripple is moving in the right direction. The fintech firm is building a strong foundation, expanding its services across the world. They are also forging partnerships with global banks and leading institutional funds. All of these are helping Ripple move forward, but not its native token XRP. The leading altcoin briefly dipped to $1.98 level on Monday and could head south this week due to weak sentiments. It s already down close to 13% in a month.
Credit: Source link
