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Ripple’s long-anticipated journey toward becoming a publicly traded company has kept the XRP community on edge. Although discussions around a $30 billion valuation have circulated for over a year, the path to accessing stocks remains a point of interest — and controversy.
One of the most debated methods involves purchasing synthetic pre-IPO shares through third-party services. These services, while increasingly popular, have sparked concerns about their legitimacy and potential risks.
Recently, the XRP community has been abuzz with discussions about the ethical and legal implications of these synthetic products. Critics argue that investing in such offerings resembles speculative gambling, with little oversight or transparency. David Schwartz, CTO of Ripple and a key figure in the company’s founding, has entered the conversation with his perspective on the matter.
To buy or not to buy?
Schwartz shared some frank thoughts on the risks of buying shares on the secondary market in a social media post. He mentioned that brokers often do not give retail investors all the information they need, which leaves them open to prices that are too high and incomplete disclosure.
If you do not have access to all the data, you are at a disadvantage, especially when the main goal is to make the most profit for the sellers and middlemen.
The developer suggests that anyone thinking about buying secondary market pre-IPO stocks should look at information from more than one source, not just their broker.
There are a few tools that can give you some insight into these markets, but they depend on the data that’s available. Even so, it is always better to have some data than none, and comparing multiple quotes is really important for getting through these complex financial waters.
The message is clear: While the desire of investing in Ripple’s pre-IPO stocks may be tempting, the risks cannot be overlooked. With the real offering approaching, it is important for investors to exercise caution and due diligence before participating in secondary market transactions.
Source: Ripple's IPO Countdown: David Schwartz Exposes Pre-IPO Stock Pitfalls
