Ripple CTO David Schwartz has cautioned investors about the risks of purchasing private shares on secondary markets. Schwartz identified six major concerns, including unreliable pricing data, lack of transparency from companies, and fees that could increase costs by up to 10%. This warning comes as speculation grows about a potential Ripple IPO, following a recent $500 million share sale that valued the company at $40 billion. Key investors in this round, such as Citadel Securities, Galaxy Digital, and Pantera Capital, received favorable terms, including guaranteed returns if shares are sold back to Ripple within three to four years.
Ripple CTO Highlights Risks in Secondary Market Share Purchases
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