Ripple update: Question: Stock/Crypto price drop and its implication for Ripple
Just did some research on whether or not a stock price of a company directly affects that company’s finances. I came across this:
*But does a drop in share price matter to the individual corporations in question?*
*It matters indirectly. If you buy a share of Apple for $300 and sell it for $250, the company itself doesn’t lose any money. In that sense, day-to-day fluctuations in stock prices don’t mean much to stable corporations with stockpiles of cash. (Apple, for instance, currently has* [***$76 billion***](http://www.npr.org/blogs/thetwo-way/2011/07/29/138823797/in-perspective-right-now-apple-has-more-cash-on-hand-than-treasury) *stored away.) A drop in market value can, however, destroy a company that* [***relies on outside financing***](http://pages.stern.nyu.edu/~jwurgler/papers/whymktmatters.pdf) *(PDF) to fund its operations.*
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So I was thinking, does Ripple rely on outside financing or are they sitting on a nice stockpile of cash? Does a big drop in XRP’s value detrimentally affect Ripple’s goals> If they are sitting on cash, I wonder how much they have at their disposal in order to make their vision come true?
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
Author: BasicAbbreviations4
Score: 2
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