Our YouTuber Jordan thinks Ripple (XRP) is set to take off. Want to know more about the recent history of the cryptocurrency? Read on...
The ongoing duel between the SEC and Ripple could reach a climax very soon. When the news about the suit broke, the immediate reaction was a sharp retracement of the price of XRP. The fallout was reflected during Christmas week in 2020 when the price of XRP went from $0.3 to find support four cents down at $0.26.
There was a strong reaction from the top brass at Ripple Labs, with the Chief Executive Officer Brad Garlinghouse stating that XRP had been allowed to function as a currency for almost a decade with no problem or need to register as an investment contract. He also came out strongly accusing the SEC of trying to cherry-pick what innovation looks like especially when their decision helps China.
The response by Mr. Garlinghouse did little to help the XRP token which had enjoyed significant growth all through 2020 by more than doubling its price.
Things began to take a turn for the worst when exchanges began to delist the XRP token. Coinbase and Bitstamp were fast movers when things began to get heated between Ripple and the SEC. The uncertainty over the XRP lawsuit drove the exchanges to suspend XRP trading in a bid to protect traders as the value of the token began to drop.
Fast forward to today
With the backstory of how Ripple fell from grace well documented, Ripple enthusiasts look forward to a post-troubled period. Almost a year on, Ripple executives have come out saying that they have no plans to settle with the SEC. Speaking to FOX Business, Ripple’s legal apparatus oozed confidence that the Gensler-led SEC would see reason with the organization and dismiss the lawsuit.
Consistent with what Ripple’s Labs CEO Brad Garlinghouse said 10 months ago, Ripple’s legal arm believes that the suit is an attempt to pick winners and losers in the crypto space, while also stifling innovation.
When questioned about why Ripple and the SEC had not come to a much-awaited settlement yet, Garlinghouse said back in January that discussions were in the works.
“Can’t get into specifics, but know we tried — and will continue to try with the new administration — to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved,” said Garlinghouse.
Nine months on and the XRP community could be in for a pleasant surprise.
XRP about to blow?
After months of agitation and pain, XRP enthusiasts could get their big break. Before the situation with the SEC, XRP had a cult following online. That explains its steady growth in price throughout 2020 as it saw its price more than double in a few short months.
Here are three reasons to get excited about XRP.
1. A more progressive SEC
Gary Gensler, unlike his predecessors, has a well-documented history with crypto. Gensler taught crypto at the Massachusetts Institute of Technology (MIT) before he got the top job at the SEC. Ripple and XRP enthusiasts are hopeful that Gensler will be sympathetic to their cause and throw out the protracted suit.
It’s not about Gensler merely having experience with crypto; it’s about his in-depth knowledge of the crypto space for XRP enthusiasts. A U.S Senate Banking Committee hearing recently saw popular pro-Bitcoin senator Cynthia Lummis question the SEC boss on innovation. Gensler let it be known at the meeting that he was supportive of responsible innovation.
The SEC chief also appeared to back Bitcoin by saying that Satoshi Nakamoto’s innovation was real. He added that the innovation had been and could continue to be a catalyst for change. Gensler’s words were a clear indication that the SEC could be more agreeable to Blockchain innovations and that Ripple could get a favorable decision concerning the lawsuit soon.
2. XRP was always a solid asset
There was always a valid use case supporting people’s love for XRP. XRP is the cryptocurrency for Ripple labs products used for asset exchange, payment settlement, and remittance systems. Ripple powers lower-cost and fast cross-border payments using XRP to source liquidity on demand. The cryptocurrency works like SWIFT, a service popularly used by banks and other financial institutions. Ripple’s Blockchain-based solution is cheaper and much faster.
According to figures from the World Bank, 1.7 billion adults worldwide remain unbanked. This is projected to change drastically with the advent of mobile phones and the internet. As the world comes closer and closer together, the opportunity for Ripple is immense. The value of XRP rests on its core use case, which is to be a bridge asset when converting currencies. In a world that’s going increasingly digital, XRP will have a big role to play going forward since it cuts the time taken for cross-border payments to mature.
The ability to send payments in real-time and settle them immediately should make XRP a huge talking point soon. The fact that related costs of the transaction are lower compared to other Altcoins will make XRP the most demanded token in the space soon. Barring any more regulatory upsets, it’s a reason for investors to be upbeat.
3. A super bullish investment community
XRP is being backed not only by the bullish nature of its community but also by renowned analysts in the investing world. The token’s price has been stuck in a range trading below $1.1 over the past week. Despite the stagnation, analysts have it that XRP is about to see a price breakout similar to the highs seen in 2017.
An analyst with Twitter handle @CredibleCrypto, shared his analysis where he predicted a sharp rise in price if XRP breaks past its all-time high of $3.40. The analysts also predict a further target of $20 to $30 by the end of the bull market. The analysis is consistent with what most analysts expect will happen where the price could rise by 1400% in 30 days.
Another analyst, Kevin Cage, shares the sentiments of @CredibleCrypto. Kevin Cage predicted in July that XRP would double in price and it went just like he had predicted.
Attorney Jeremy Hogan of Hogan and Hogan Law firm predicts a positive outcome in the SEC vs Ripple suit. He believes that recent depositions provide a clear path for a Ripple win. The anticipation of a positive result will drive the Ripple price in the coming weeks.
The SEC vs Ripple could end positively for XRP investors and enthusiasts. Analysts and even some legal minds believe that the case could be thrown out. XRP enthusiasts can bank on the utility of the token, a potentially more progressive SEC, and budding investor confidence to make XRP a great investment. The price could continue to range for a while until a ruling is made though. We could see breakouts on either side in the short term depending on whatever ruling is made and when.
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