DISCLAIMER: I am not a financial advisor. All contents on this blog are solely my own personal views and for Cryptocurrency Trading education/entertainment purposes only. Cryptocurrency Trading is very risky. Losses can exceed deposits. Enter with discretion.
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To be honest, December 2020 was a disastrous month for the XRP. Its price alone for the said month went on a free fall after the awaited Spark token airdrop snapshot took place. Adding more damage for the cross-border token, former US SEC Chair Jay Clayton tweet out claiming a lawsuit filed against Ripple company alleging its executives of selling unregistered securities called XRP. What more can we ask for? We have seen a massive pump on XRP that soared its price as high as $0.75 lately even before the Telegram’s coordinated 200K members occurred. The latter pump failed as exchanges claimed servers went down on the moment of pump making it looked like a clown show. The price of XRP of course immediately hammered to as low as $0.34. At the time of writing this article, XRP’s price managed to recover and exchanging hands between 0.37-0.38 range.
Let’s forget the technicals or news for a moment. I want to discuss a serious topic about what is about to happen for XRP going forward.
Forex or the FX market is the largest financial market in the world with daily average volume of at least $6 Trillion dollars. Out of this humongous volume, there are 8 major fiat currencies that are traded all over the world namely: US Dollar as the base reserve currency, Euor, GBP or British Pound, Australian Dollar, Swiss Franc or CHF, Japan’s Yen, New Zealand Dollar NZD and Canadian Dollar CAD. Of course lots of exotic currencies as well and hundreds of cross trading pairs.
Now, with the cryptocurrency or crypto market which is still developing and young has barely over $1 Trillion dollar market cap, we can consider the top 3 major coins as follow: Bitcoin, Ethereum and Ripple or XRP. These three are just like Gold, Silver and Bronze.
If US SEC overrules lawsuit citing XRP as an unregistered security, then it will be a huge blow to the entire crypto system! Why? If a lot of exchanges delist XRP especially in the US and some other participating international exchanges like Bitstamp that will definitely give a domino effect,it will heavily affect XRP's ODL as a lot of corridors will stop supporting. That will be a GAME OVER for Ripple and XRP just like GameStop’s win against Wall Street.
Most of people still don't get the many utilities of XRP has to offer, undervalued or hated as it may seem, but one of samples I can give is, suppose I've got 1000 Bitcoins in my Binance wallet, and I want to transfer it as quickly as possible to another exchange or wallet. What do we think I will do? Simple, I will sell all these 1000 Bitcoins in exhange for XRP. This process will not only boost XRP's price as 1000 Bitcoins is not a joke folks, that is a whale action right?
There will be a sudden upsurge of XRP's price, and I can even transfer these XRPs to the destination wallet in seconds. Carrying the 1000 Bitcoins value, that is XRP’s purpose, to be the internet of value. Carrying value and moving it across all corners wherever in the world.
After that, I will buyback my 1000 Bitcoins cheaper than earlier also reducing XRP price on the process but after all I save a lot of money in fees and time of transacting this transfer.
There are many use case of XRP to mention. I cannot cite them all here and that would take a lot of other articles to complete. I just want to pinpoint here the power of XRP's utility in the form of Arbitrage Trading.
To know more about what is Arbitrage Trading, feel free to visit the article below for more information:
https://www.investopedia.com/terms/a/arbitrage.asp#:~:text=Arbitrage%20is%20a%20type%20of,being%20offered%20on%20different%20exchanges.
As a conclusion, SEC VS Ripple is a very serious case. And I want to be bias here, I want Ripple to win so that XRP gets the clarity it deserves for the best after many years of waiting.
If XRP gets clarity then the rest of the cryptocurrencies out there win.
