In this article, we will analyze the plans of Ripple and its effect on XRP price.
Recall, the charges were initiated against Ripple for trading unregistered securities under the guise of XRP tokens, and the founders of the company, Brad Garlinghouse, and Chris Larsen, are also defendants. The latter are accused of misleading investors because the company provided inaccurate information regarding the use of the on-demand liquidity service, which uses the XRP token. Ripple’s reaction to the initiation of the legal investigation was that the regulator would pursue the entire industry and then take on other companies:
Ripple has spent 8 years working tirelessly to build an incredible company transforming global payments. Our mission doesn’t stop! Here’s what I sent to employees yesterday + our lawyers’ reaction to today’s SEC filing. https://t.co/wGHW4hCW2T
— Brad Garlinghouse (@bgarlinghouse) December 23, 2020
But this is already an old story. And here’s what the new answer says. First, and this is probably the most important point that Ripple intends to resolve the conflict in the framework of pre-trial proceedings:
Q: Why didn’t Ripple settle with the SEC?
Can’t get into specifics, but know we tried – and will continue to try w/ the new administration – to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved. 2/10
— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
This means that Ripple does not want to arrange a long trial for six months, a year, and so on. And they are ready to simply buy off the regulator by paying a fine, provided that its size suits them and no additional requirements are put forward. For example, burn all XRP tokens or shut down the XRP ledger. If a simple fine is enough for the US SEC, Ripple will probably just hand over the money. On such great news, we should expect new XRP growth.
The second part of Brad Garlinghouse’s answer was to quell XRP’s panic. By the way, the most responsible supporters of this cryptocurrency even signed a petition in defense of XRP and there are several tens of thousands of them.
But let’s back to Brad Garlinghouse, head of Ripple. He noted an important point that trading platforms do not delist XRP, but only temporarily freeze trades until the situation is clarified.
That is, as soon as the issue is closed, they can resume almost instantly, and this is another important point in favor of the future growth of XRP. Garlinghouse also noted that he was upset with Tetragon’s demand to redeem Ripple shares:
Oof. Ripple has been sued by a shareholder after the SEC claimed its XRP tokens were sold improperly. Tetragon was an investor in Ripple's Series C round, which gave it a $10 billion valuation. Now it wants to sell the stock back to Ripple. https://t.co/mbQQriwVKU
— Ryan Browne (@Ryan_Browne_) January 5, 2021
This is the company that bought the real Ripple shares, not XRP. But the question with them will also be closed. As for the charge of paying for the use of an XRP-based service, PayPal and other payment companies have developed in the same way. And this is completely legal.
There was some bad news during this time, as Bakkt said they were not planning any XRP-based products. And crypto fund Grayscale has removed XRP from its investment product Digital Large Cap Fund. But this time they did without the catastrophe, at least for a while Litecoin took the place of XRP in the TOP-4 cryptocurrencies in terms of capitalization, but then the price went up again.
Let’s make it clear right away that we are aware of the claims against Ripple about the centralization of their service and how they simply make money on the sale of XRP tokens. Also, we do not share a fanatical belief in a great future for XRP, such as a replacement for the dollar, and so on. The first negative consequences from this whole story with the court are already reflected in the price and without any sensation, such as the SEC demanding the freezing of the XRP network, the rate will not fall further. As for the growth to $ 0.37 or by 67%, then two factors played a role:
The first is good news regarding Ripple’s positive attitude towards a fast settlement of the litigation. The second one is a pump story with Stellar and Ukraine. Stellar even flew into the TOP 10 cryptocurrencies, and then everyone began to remember that this is an XRP fork. And then they figured out the reasons why XRP should also be urgently bought.
XRP Forecast in 2021 In the future, the XRP rate behaved in accordance with the entire market, repeating the dynamics behind Bitcoin. That is, the correction on January 10 and 11 with a drop at the moment by $ 0.31 and now we are in the recovery stage: XRP rate recovery.
That is why the fact that Bitcoin is drawing a head and shoulders pattern, which may indicate a continuation of the correction. If this happens, then XRP will fall. But as long as the price follows the market, it is not scary, because then we can also quickly turn to growth. But what is important is the documents of the SEC and Ripple, which they will submit to the court. The information in them will influence the future of Ripple. And keep in mind the possibility of rapid growth if Ripple and the SEC agree to close the issue by simply paying a fine without a trial at all.
Has the End of the Dollar Begun and Is the World Ready for Bitcoinization?
Monero Price Analysis: XMR/USD Market Has Reversed
How To Collect Crypto Portfolio Like Elon Musk: What Coins Does Billionaire Invest In
Ethereum Price Analysis: Crypto Trading Volume And Rate Keep Increasing