Ripple’s XRP has been one of the most popular cryptocurrencies on the market for years. Ripple is a payment network based on the blockchain and is mainly used in the banking sector. Over the past 1-2 years, the legal dispute with the SEC has dominated the headlines around Ripple. But could Ripple’s XRP explode soon?
In this article, we will discuss the state of Ripple (XRP), the ongoing litigation with the Securities and Exchange Commission ( SEC) and the possible excellent future of Ripple.
What is Ripple?
Ripple is a payment network based on the blockchain. It has been developed explicitly for banks and is intended to simplify international payment transactions. The aim is to simplify payment transactions between different payment rooms and to make inefficient payment corridors more efficient.
International payment transactions are still a certain problem for the big banks, as the costs of transactions between different payment rooms are increasing. Ripple offers efficient solutions with its payment network and thus significantly reduces the costs for the banks that use Ripple.
Ripple has its own cryptocurrency called XRP. The XRP tokens are used for transactions on the network and provide liquidity. The XRP is often criticized because, according to many investors, it is not a “real” cryptocurrency. Because the majority of XRP tokens are held by the developers themselves. Thus, the XRP is not completely decentralized.
How has the XRP price fared in recent months?
The XRP has been able to stay in the top 10 cryptocurrencies by market capitalization in recent months. For years, the XRP has been one of the cryptocurrencies with the highest market capitalization. During the last bull market, however, the XRP price could not rise as much as other cryptocurrencies. This was due to the legal dispute with the SEC, which we want to shed light on in the near future.
While most cryptocurrencies reached their all-time high in 2021, the XRP did not succeed. We saw two price peaks in September and November. After the latter, the market collapsed continuously, which also caused the XRP price to fall continuously.
The strongest losses were experienced by the XRP until the end of January, when it previously fell from $ 1.28 to $ 0.62. In the following 3 months we saw a slight recovery. However, from May there was a massive crash. The XRP price fell to $ 0.32. As a result, the XRP has lost 75% of its value since November. These losses are similar to the losses of other cryptocurrencies during this period.
What is the dispute with the SEC about?
Since 2020, the company Ripple Labs, which is behind the Ripple payment network and the cryptocurrency XRP, has been in a protracted legal dispute with the US Securities and Exchange Commission (SEC).
The charges against Ripple were filed on 22.12.2020. CEO Brad Garlinghouse and co-founder Christian Larsen are accused of operating securities trading without a license. Furthermore, the lawsuit includes an allegation of market manipulation through the own holding of large amounts of XRP.
The SEC’s problem is that it sees the XRP as a security and not as a cryptocurrency. For securities, much stricter rules apply when trading. Allegedly, the SEC is said to have warned Ripple about the classification and the consequences back in 2012.
The legal dispute with the SEC has been one of the most important issues in the crypto market over the past 2 years. It was probably the event that determined the course of a cryptocurrency more strongly than any other isolated topic. The XRP price suffered extremely from the legal dispute.
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Will Ripple explode after the dispute is resolved?
The price of Ripple (XRP) has had to suffer a lot in the last 1-2 years due to the legal dispute with the SEC. But if the legal dispute is settled, Ripple could actually explode. Above all, a positive outcome with the dropping of all charges could mean a massive increase in the XRP price in the coming weeks and months.
In 2022, the positive news about the litigation for Ripple began to accumulate. Finally, potential conflicts of interest within the SEC were disclosed. Allegedly, the Securities and Exchange Commission has also made many mistakes in the past and has not sufficiently informed those responsible at Ripple. A solution is probably imminent in 2022.
Will Ripple explode or will the bear market stop the price rise?
An increase in Ripple in the event of a termination of the litigation with the SEC is very likely. But will Ripple (XRP) really explode in price? Many investors may soon ask themselves this question.
The forces of the bear market seem to be so strong that a price explosion of Ripple (XRP) in the coming weeks and months seems rather unlikely. Only if we see a real market reversal for all cryptocurrencies, Ripple (XRP) could actually explode.
At the moment it seems that the XRP price could stay in the top 10 of the cryptocurrencies. However, if the legal dispute turns out to be positive, the XRP could rise again in the ranks. In 2017, the XRP was still the number 2 cryptocurrency by market capitalization, ahead of Ethereum.
Is it worth investing in XRP now?
The XRP is currently at a very low price level after the massive losses on the market. This level could hold for a few more months due to the bear market. However, it may also happen that the XRP price may rise again as a result of the termination of the legal dispute with the SEC or due to an improvement in the overall market situation.
Can Ripple (XRP) explode in the coming weeks and months? A big explosion of the price is unlikely. However, an increase in the price is even likely due to the mentioned circumstances. Accordingly, it should be worthwhile to buy the XRP on the current market if you are planning a long-term investment.
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