The crypto market is currently in a consolidation phase. However, XRP prices seem to be rising. A clarification of the SEC case seems to be in sight. With New Year 2023 fast approaching, why has the price of XRP increased? Will 2023 be the year Ripple achieves victory over the SEC? We recap what happened with Ripple and outline what should happen in the coming months.
What is Ripple?
Ripple is a technology company that offers a range of payment and financial products built on a distributed accounting platform called XRP Ledger.. The Company’s principal products include global payment network RippleNet, used by financial institutions and payment providers to send and receive cross-border payments, and digital currency XRP, used as a bridge currency to facilitate the transfer of value between different currencies.
Ripple also offers a range of other products and services, including liquidity solutions and risk and compliance management tools in the payments industry. The company is headquartered in San Francisco, California, and was founded in 2012.
What is XRP?
The XRP cryptocurrency is a bridge currency that facilitates the transfer of value between different currencies. You can buy and sell XRP directly with other users or simply buy it on online exchanges.
There are 2 types of exchanges: centralized exchanges (CEX) and decentralized exchanges (DEX). You can find the difference between the two in this article.
Why does Ripple have a lawsuit with the SEC?
In December 2020, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, Inc., which alleged that the company was selling unregistered securities in the form of XRP, a digital asset created and distributed by Ripple. The SEC lawsuit alleges that Ripple and its two co-founders, Christian Larsen and Brad Garlinghouse, raised more than $1.3 billion by selling XRP to retail investors without registering the asset as a security with from the SEC, as required by law.
Will Ripple convince the SEC?
Ripple has denied the allegations in the SEC lawsuit and pleaded guilty. forced to fight the case in court. The case is currently pending and it is not yet known how it will be resolved. However, Brad Garlinghouse has tweeted several times that he believes Ripple will win the case.
SEC litigation: When will Ripple win?
Ripple’s litigation with the SEC was originally expected to be resolved (or at least a settlement should be pending) in Q4 2022. However, due to delays, the trial has been extended until 2023.
Analysts predict that the litigation will be resolved in the first quarter of 2023. If all goes well for Ripple, the price of XRP could skyrocket. The FTX results, on the other hand, showed that the FTT token represented a security. This worried Ripple investors as it raised the possibility of a precedent in the case of Ripple.
Why has the price of XRP increased?
Over the past 7 days, most cryptocurrencies are in the red. However, XRP gained more than 5%. There are 2 reasons for this price increase:
- Technical reason: XRP reached its high support price of 30 cents, which attracted buyers, causing the price to rise
- Basic reason: The lawsuit is in the process of being settled. Despite the delay, the price of XRP is expected to rise once the dispute is resolved. The date has been moved to the first quarter of 2023.
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