Ripple’s latest streak of big deals has pushed IPO talk back into the market, and as more investors try to grab pre-IPO exposure through secondary brokers, Ripple CTO David Schwartz stepped in with a reality check, laying out six pain points that shape private-stock buying today — not because they are tied to Ripple but because these issues show up every time enthusiasm runs ahead of how the secondary market actually works.
First, there is the issue of pricing, where secondary brokers often give solid-looking quotes based on partial or unreliable data. This means buyers walk into negotiations without knowing if the “market price” they are shown has any real basis.
Since brokers make more when the price is higher, and sellers want the same, the buyer ends up as the only one keeping the numbers in check. This makes a simple deal into a slow and lopsided process.
(None of this is Ripple specific at all and I definitely don’t want to either encourage or discourage anyone to or from buying or selling Ripple stock on secondary markets.)
There are a few serious issues with buying stock in privately held companies through secondary market…
— David ‘JoelKatz’ Schwartz (@JoelKatz) December 10, 2025
Schwartz also mentioned the information gap, since private companies do not publish anything like public market disclosures, leaving buyers with hardly any visibility.
Meanwhile, insiders — who usually know a lot more and are often the ones selling — sit on the other side of the trade. This creates a setup where the buyer is always playing catch-up.
Execution matters too
The tricky part is that deals can drag on for weeks because of ROFR steps, company approvals or administrative delays. This leaves buyers waiting while market conditions change around them. And once you add in the fees — 5% for the buyer and 5% for the seller, included in the buyer’s final cost — it is no longer a shortcut to an IPO.
It becomes a long, expensive detour, where excitement does not make things any easier.