Dennis Y.Thu, Apr 8, 2021 10:13 PM
Watchdogs: Ripple Lawsuit Struggle, Review, Expectations
The story of Ripple's cryptocurrency is not quite as sunny as its creators would prefer. In this review, we make a brief analysis of XRP news and Ripple Lawsuit.
The essence of the Ripple Lawsuit and struggle between the SEC
In December 2020, the US Securities and Exchange Commission (SEC) accused Ripple of violating cryptocurrency regulation laws and an unregistered sale of securities under the guise of Ripple crypto worth $1.3 billion. The preliminary hearings of the Ripple Lawsuit were scheduled for February 22, 2021.
Other companies: fight and support
The consequence of these accusations was the collapse of the XRP rate as many crypto platforms stopped supporting the coin. Coinbase refused in XRP listings. As well as Grayscale Investments, Kraken, and so on.
At the same time, Gatehub has declared full support for XRP.
Other Ripple Lawsuits
Earlier, in May 2020 XRP cryptocurrency was also in the public eye because of Bitcoin Manipulation Abatement's lawsuit. In 2018, there also were several lawsuits from private investors.
Ripple Lawsuit Update - Ripple strikes back
Ripple Labs responded to the SEC complaint and argued that Ripple is a digital currency, and it's out of the jurisdiction of the SEC. In addition, the company stated that it has never conducted an ICO.
On January 30, representatives of Ripple asked the SEC for information on why the agency does not classify Bitcoin and Ethereum as securities. The XRP coin price immediately rose.
On April 6, the price has risen once again after Ripple won ruling to expose SEC docs on Bitcoin and Ethereum cryptocurrencies.
How XRP is doing and current Ripple cryptocurrency expectations
You need to be careful when investing in XRP, as the coin is subject to Pump & Dump tactics (artificially inflating prices with the subsequent sale at its peak). The future of XRP and its dynamics largely depends on how the litigation between Ripple and the US regulator will develop. Practice shows that such court cases in the United States have been considered for years. That is why the risk of a protracted XRP correction is high.
The lawyer Stephen Pally noted his predictions on Ripple: the company will be forced to accept the regulator's point of view. He noted that Ripple's quick official reply indicates that this startup wants the quickest end of the battle of justice. Pally made a bet on the fact that Ripple will regulate the dispute and may agree to the settlement agreement. Thanks to this, the XRP trade on the US exchanges will be available.
XRP/USD price dynamics
Many experts were confused by Ripple's behavior on February 1. At first, the price of the coin exceeded $0.75. That was Ripple coin's all-time high number. And then the rate collapsed by 47%, to $0.38. Traders incurred significant losses of $508 million in one day.
Ripple cryptocurrency price today
Nevertheless, at the time of this writing, the XRP rate is $0.98, and the volume of XRP market cap, according to Coinmarketcap, ranks 4th (see Ripple cryptocurrency growth graph and essential numbers below).
Also, you can find below XRP price and value on Coingecko from February 1 to April 8, and see that it has grown back.
There is an option, that after paying the fines, the Ripple project will continue to evolve further. Besides, we need to take into account that the company is backed not so much by retail investors. There are a bunch of business partners, which Ripple got in recent years. The situation will become clearer after the expected SEC hearing. Let's wait for the latest Ripple lawsuit update and see.