The future of XRP after SEC vs RIPPLE LABS

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Avatar for Nitzjet
3 years ago
  • This is a post about how XRP may perform following the resolution of the SEC (Securities and Exchange Commission) vs Ripple Labs case. To be a security, or not to be a security, that is the question. A brief overview of Ripple & XRP Ripple is designed on an open source code base using a digital payment protocol for financial transactions that are cryptographically signed. It enables the global payments of money / currency in any form within around 5 seconds with negligible transaction costs. XRP is the native digital currency of Ripple, which is used to facilitate the exchange between different currencies. Using XRP as the mediator removes the normal exchange fees seen in other financial transactions, dollars to euro for example. A brief overview of SEC vs Ripple Labs To re-affirm, this post is about how XRP may perform following the case, not in depth legal details. The SEC filed a case against Ripple Labs and two execs Christian Larsen and Bradley Garlinghouse, alleging they sold XRP as an unregistered security (i.e equities that hold a monetary value such as ownership of a position in publicly traded stock) and therefore breaching regulations - www.sec.gov/litigation/complaints/2020/comp-pr2020-338.pdf Ripple Labs consider XRP to be incompatible with the securities regulation or an investment contract and that registration as a security would be an empediment to it's function. They also view Etherium as a comparitor, however no cases have been raised. Etherium has never been registered as a security and the SEC themselves annouced that Etherium is not a security - www.sec.gov/news/speech/speech-hinman-061418 What are the chart observations? The chart is displaying cryptocurrencies and their respective percentage price increase at weekly intervals. The standout unsuprisingly is $BTC (green), which had you invested and hodl since the start of the chart, you would be looking at a huge increase of 1863%. The alts are $ETHEREUM (blue), $ADA (orange), $TRX (purple) and $XRP (black). Late 2017 early 2018 when BTC was making the headlines for it's ATH $20,000 price tag, XRP outperformed BTC when it came to % growth increase and set an ATH of $3.84. Then came a fall from grace for all, that took nearly two and a half years for sustained growth to kick off, right around the time the world went into coronavirus pandemic mode. From 2019 onwards XRP, ADA and Etherium in particular were close neigbours with BTC leading the charge pulling the rest with it like gravity. At the end of 2020 and start of 2021, the alts took off except for XRP because of a legal case filed by the SEC in December. Where could XRP be if it wasn't for the SEC case? First lets look at the others. Since December 2020 the values of cryptocurrencies on the chart have made substantial progress and acheived thier respective ATH. BTC $24,000 to $61,000 increase of 154% Etherium $580 to $2140 increase of 268% TRON $0.03123 to $0.1250 increase of 300% ADA $0.1370 to $1.32 increase of 863% Now lets look at XRP. The natural benchmarks would be ADA and Etherium due to thier close historical relationship. Or we could benchmark against BTC which has tripled it's ATH. Is triple ATH realistic? Maybe not. So lets look at them all using BTC, Etherium, TRON and ADA % increase, and XRP going to it's ATH and triple ATH respectively. XRP $0.6168 to $1.56 increase of 154% (BTC % increase) XRP $0.6168 to $2.26 increase of 268% (Etherium % increase) XRP $0.6168 to $2.46 increase of 300% (TRON % increase) XRP $0.6168 to $5.93 increase of 863% (ADA % increase) XRP $0.6168 to $3.84 increase of 522% (Current ATH) XRP $0.6168 to $11.52 increase of 1767% (Triple ATH ) What could happen to XRP if Ripple ISN'T determinded to be a security? Potentially many rocket and moon emojis looking at the benchmarks. The only other thing holding XRP back is it being delisted from cryptocurrency exchanges predominantly in the US and exchanges retricting access to US users. Once relisted, I imagine the tendrils of FOMO will take control and help the price upwards. What could happen if Ripple IS determined as a Security? Bad times for Ripple Labs and XRP. Ripple already stated that registration as a security would be an empediment to it's function, but they would be obligated to follow the legal framework governing securities. The price of XRP may drop, probably towards 0.2000 as this it where it fell to when the case was announced. They will also face a hefty fine for illegally selling XRP as an unregisterd security. This does also set a precedent, meaning the SEC can pursue anyone else not in line with this agenda, which isn't great news for innovation in the cryptocurrency space. But, that doesn't mean the end for Ripple and XRP as they have been actively looking into other countries to continue without these constraints. So maybe one more time, we'll have to buy the dip and hold.

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