The XRP coin is one of the main talking points in the crypto market. Because the price potential of the coin seems to be very large. However, an ongoing legal dispute with the US Securities and Exchange Commission (SEC) has dominated cryptocurrency news for months. But XRP may soon be classified as a security. What are the reasons and is XRP the end of it?
In this article, we want to examine the possibility of XRP being classified as security and whether Ripple will be finished after that.
We currently have an exciting test offer for you! you can our Premium Membership Try it for €1/day for the first month. Consider giving it a try if you want to stay updated on the crypto market! You will receive trading ideas and professional trading support in the premium area. In addition, you will often receive information on the latest crypto trends at an early stage! So could our customers also buy various NFTs early enough. If you want to know more about our Premium trial offer, then Click here!
How has the price of XRP evolved in recent months?
Like almost all other cryptocurrencies, the price of XRP has seen a decline in recent months. The bear market of 2022 made sure of this: the price of XRP fell from a value of 1 US dollar at the end of 2021 to a value of 0.35 dollars more recently. The XRP price has lost around two-thirds of its value.
The losses started mainly in the first half of 2022. The price fell to a value of $0.32 in June. In the following weeks, the price of XRP stabilized. In September and October, the price rose massively again, as there was good news from the Ripple vs SEC legal dispute. But the crash of FTX caused those gains to be wiped out again.
What is the danger for XRP?
Ripple Labs’ legal battle against the SEC has been over cryptocurrency for 2 years now. This is why the price of XRP could not rise as much as other coins during the last bull market. The price has not even reached the prices of early 2018, where XRP reached its all-time high.
The danger is that Ripple could lose the lawsuit and the company’s founders could be found guilty of securities fraud. This would seriously damage trust in the payment network.
Of particular interest is which asset class the XRP coin falls into. Bitcoin was last classified as a commodity by the SEC. The reason for this is the proof-of-work process and the scarcity of Bitcoin. With XRP it might look different.
Are cryptocurrencies securities?
The SEC (Securities and Exchange Commission) has the power in the United States to classify a financial asset. The classification of cryptocurrencies is very important in terms of regulation. When classified as securities, cryptos are subject to the same, often strict, regulations as traditional assets such as stocks.
Why is Ripple in danger now?
The dispute with the SEC is mainly determined by one question: is Ripple’s XRP coin a security? If this is the case and Ripple’s founders had timely knowledge of this classification, then the allegation of illegal securities trading could be true. This would hit Ripple Labs and therefore cryptocurrency hard.
The SEC recently classified FTX’s FTT token as a security. This is bad news for Ripple, as this classification could also apply to XRP in the future. Next, it should be clarified whether the SEC provided the company with the correct information in a timely manner.
Can Ripple (XRP) implode in this case?
A condemnation of Ripple (XRP) would be a blow and could seriously harm the company. XRP price should also implode. It is difficult to say at this time if Ripple really loses this legal battle. In fact, more and more information has come to light that has brought relief to Ripple in the past.
Is an investment in XRP Coin worth it?
An investment in the XRP coin is associated with great risk since this legal dispute. As with all speculation, however, profit is also important. If Ripple wins the lawsuit, it could skyrocket the price of XRP in the weeks and months to come. But you have to decide if you want to take that risk with an investment.
Looking for a Chart analysis tool, who doesn’t distract you with community messages and other noise? Looked GoCharting to! It is an easy-to-use online charting tool that requires no downloads or prior knowledge.
Click here to get a 10% discount on your first payment (monthly or yearly)!
CLICK ON CLICK THIS LINK TO INVEST IN XRP AT COINBASE!
GO TO THIS LINK TO INVEST IN ETHER AT BINANCE!
GO TO THIS LINK TO INVEST IN ETHER AT BITFINEX!
We currently have an exciting test offer for you! you can our Premium Membership Try it for €1/day for the first month. Consider giving it a try if you want to stay updated on the crypto market! You will receive trading ideas and professional trading support in the premium area. In addition, you will often receive information on the latest crypto trends at an early stage! So could our customers also buy various NFTs early enough. If you want to know more about our Premium trial offer, then Click here!
Featured posts
You might also be interested in