Whether for or against, the possibility of resolving conflicts is viewed as a benefit to this coin.
The Securities and Exchange Commission (SEC) has intervened in its case against XRP (CRYPTO: XRP) and its parent firm, Ripple. Here is a translation of the highly engaging conversations from the February 9 edition of “The Crypto Show.” You might be interested in this: What Caused the Drops in Solana, Chainlink, and Ethereum Today? Chris MacDonald and Jon Quast explain why a probable settlement is excellent news for investors, regardless of whether the case is determined in favor of or against cryptocurrencies.
Jon Quast: Let’s discuss a little bit about XRP, or should I say Ripple is the cryptocurrency and XRP is the cryptocurrency company, right Chris?
Chris MacDonald: I believe it is the other way around.
MacDonald: People used to refer to XRP as Ripple since it was created by Ripple Labs. It’s similar to Solana and Solana Labs. XRP is the cryptocurrency that powers RippleNet, which is a Ripple product developed by Ripple Labs. XRP and RippleNet are cryptocurrencies that are primarily utilized for large-scale institutional money transactions.
As a result, the concept is quite similar to that of the SWIFT network. If you’re a huge corporation or financial institution looking to move money across borders, SWIFT payments have captured the bulk of the market share in terms of large-scale transactions right now. Ripple and XRP intend to disrupt this through RippleNet. So far, their company is expanding. It is gaining traction, although it accounts for a relatively small portion of the worldwide large-scale money transfer business.
That being said, the interesting thing about Ripple and XRP is that, because of the scale of these transactions and the fact that much of their activity touches the United States in some way, the SEC looked specifically at Ripple, and it was one of the first cryptocurrencies that the SEC explicitly tackled to determine whether XRP is a safe bet or not. This is the essence of the Ripple issue. It has been declining during the last year. The SEC’s action, which was filed in December 2020, is responsible for a large portion of this drop.
The lawsuit claims that XRP and executives at Ripple launched unregistered securities offerings of approximately $1.3 billion over a seven-year period, from 2013 to 2020. [It appears that the Ripple founders earned over $600 million, which is a sizable sum, through multiple token offers. Due to COVID and other difficulties, this litigation moved slowly.
There have been several halts throughout the process. However, in the last week, an unusual event has essentially prompted XRP to surge over 50% in the last seven days, and that is that the court determined that the evidence that is sealed in this case be opened to the public. This is fascinating for two reasons. For starters, it makes public what the SEC is seeking for, and with so many XRP supporters, it will be fascinating to watch how the public reacts to what the SEC is searching for.
Another interesting aspect is that the court discovered this information essentially at the request of XRP. Right now, it appears like the court is siding with XRP, or that the market is anticipating a favorable outcome. But the other aspect of this issue is that, positive or negative, a resolution is typically regarded as a good thing, and the reason for this is because investors and the market in general dislike ambiguity.
Investors may remember what occurred to Alibaba after the Chinese government punished them $2.8 billion, and the stock rose 10% in a single day as a result. Markets despise uncertainty. It appears like the drama is nearing to a close, but it has been a long one. For Ripple, XRP, and investors in this field, the finish appears to be near, and I believe there is a good attitude as a result.
