After the US Securities and Exchange Commission sued Ripple alleging that the company sold $ 1.3 billion in securities, a number of well-known exchanges around the world continued to be written off (including Coinbase, Kraken, and OKCoin). Ripple representatives. cryptocurrency, XRP, from their platforms.
As a result, many around the world believed that the death of the promising project, a slow but sure death, was only a matter of time; However, XRP appears to be crying since the bad news fell and the cryptocurrency’s value has risen more than 100% since early April – it’s currently around $ 1.03.
Back in December 2020, the SEC filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse and Chairman Christian Larsen, alleging that they were involved in an “unauthorized safety offer” in August 2013. The government agency also charged Garlinghouse and Larsen of failure. Record his personal sale of XRP, estimated at $ 600 million, with the organizer.
In turn, the advocate for Ripple has challenged the SEC case, claiming that the XRP token is similar to other well-known cryptocurrencies such as Bitcoin (BTC) or Ether (ETH), which have been classified as commodity by the SEC. Additionally, Ripple’s legal team also highlighted the fact that it took the commission more than eight years to file a complaint.
So what drove XRP up? Jose Maria Macedo, partner at cryptocurrency analytics firm Delphi Digital, told Cointelegraph that he believes this recent economic recovery is due to broader growth in other legacy digital currencies such as EOS and Stellar (XLM) and the overall shrinking of the BTC market. dominance.
He added that the effectiveness of XRP could likely be attributed to the positive news about the Ripple SEC issue, particularly regarding the winner of a recent discovery session that will force the SEC to hand over internal Bitcoin and Ether documents. Macedo said, “This is a win for Ripple and cryptocurrencies in general, as we hope these documents help shed light on the SEC’s rationale for tokens in general.”
XRP: Either you love it or you hate it
XRP has been one of the most controversial cryptocurrencies in the cryptocurrency community for years, and its recent record is starting to prove its opponents right. However, the recent rally in the currency has been rapid. Shiraz Ahmed, host of the Crypto Valley Association podcast and managing partner of Storm Partners, a provider of crypto and blockchain solutions, told Cointelegraph:
XRP’s upward momentum is driven by Ripple’s recently announced 40% stake in Asia’s leading payment processor Tranglo. The partnership will undoubtedly increase Ripple’s presence in the Asian market. The price hike could also be attributed to a possible threat simplification of the rules should Ripple reach consensus with the upcoming SEC under Gary Gensler. ”
He noted that Ripple’s co-founder Brad Garlinghouse had previously expressed optimism about the new cabinet and said his team plans to have progressive discussions with the new SEC leadership. According to him, Ripple has yet to prove that the possibilities are limitless, especially when working in a cryptocurrency-friendly environment.
Finally, Garlinghouse previously paralyzed US regulators for lack of clarity after making comparisons with other high-tech countries where Ripple has thrived in the past. “His claims do not appear to be firm, given that rules in many parts of Asia and the Middle East have stimulated the growth of Ripple. Ahmed concluded that the exchange may reconsider the decision to withdraw the currency in the next few weeks.