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Altcoin Review

Holding $XRP? Here’s What You Need to Know

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

Reading time

4 mins
Last update

Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Category

Altcoin Review

Reading time

4 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

4 mins
Last update


xrp ripple

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What is Ripple ($XRP)?

Imagine sending money internationally in seconds, not days. That’s the goal of Ripple (XRP), a network designed to improve upon the traditional system (SWIFT) used by banks. Unlike some cryptocurrencies, Ripple uses a unique system where everyone on the network verifies transactions, making it secure and fast (think 4-5 seconds!). This network is powered by its own digital currency, XRP, with a tiny fee for each transaction. Unlike other currencies where “miners” earn rewards for verifying transactions, Ripple has already released all XRP coins, so there’s no mining involved. XRP also acts as a bridge, allowing you to exchange different currencies within the network. 

Originally designed in 2012, Ripple aims to work alongside existing financial systems, not replace them entirely. Developers are constantly improving the network, with recent proposals to further expand its capabilities. You can find the current price of XRP on platforms like Binance.

What is the Securities and Exchange Commission (SEC)?

The SEC stands for Securities and Exchange Commission. It’s an independent agency of the US government responsible for:

  • Protecting investors: This includes ensuring companies selling investments are truthful about their offerings and that brokers and advisors treat investors fairly.
  • Maintaining fair and orderly markets: The SEC monitors and regulates trading activities to prevent fraud and manipulation.
  • Facilitating capital formation: This refers to making it easier for companies to raise money by selling securities like stocks and bonds.

Think of the SEC as a referee in the financial world, watching over markets and protecting both investors and companies from unfair practices.

Ripple vs SEC Recap

For those following the cryptocurrency space, a major lawsuit is nearing its final phase. Since December 2020, Ripple has been battling the U.S. SEC, which claims the company illegally sold XRP (their digital token) as an unregistered security, raising over $1.3 billion. Ripple argues that XRP is a currency, not a security, and doesn’t fall under SEC regulation.

The case has been complex, but Ripple seems to be ahead. In 2023, they won three key rulings

  • Judge Torres ruled that Ripple’s sales on trading platforms weren’t investment offerings.
  • The court denied the SEC’s appeal of this decision.
  • Charges against Ripple’s CEO and Chairman were dropped.

However, the SEC did score a point when a judge ordered Ripple to release requested financial records.

The outcome of this case is crucial for the entire crypto industry. A Ripple win could significantly boost XRP’s price and the overall market, while a loss could lead to stricter regulations and hinder industry growth.

XRP vs SEC Update: SEC Requesting an Extension

The fight in court between Ripple and the SEC is taking a bit longer than expected. The SEC has asked the judge for more time to file their opening arguments. If the judge says yes, this will push back other deadlines in the case as well.

The SEC asked Judge Torres to push back the deadline for their arguments by 9 days, from March 13th to March 22nd, 2024.

  • This is because they need more time to review the documents Ripple recently provided.
  • If the judge approves, this will delay Ripple’s response and the SEC’s final reply.
  • Notably, Ripple has agreed to this request.

Here is the link to James Filan X’s post:

Price of XRP today

The live price of XRP is $0.587249 per (XRP / USD) with a current market cap of $32.06B. 24-hour trading volume is $3.04B. XRP to USD price is updated in real-time. XRP is -0.68% in the last 24 hours with a circulating supply of 54.59B.

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XRP Price Prediction: What will happen to XRP after the case?

Predicting the future of XRP is like watching the weather – lots of factors are involved, some predictable, others not. Many analysts have made bold predictions, but it’s important to be realistic. Some, like the prediction of a $30 XRP, are mathematically improbable due to the total number of coins available.

To avoid misleading forecasts, here are the bull and bear cases of XRP price prediction.

The optimistic outlook (bull case) depends on factors like growing popularity and a favorable outcome in the legal battle with the SEC. A positive outcome could initially boost the price, but long-term stability is uncertain. Additionally, a broader cryptocurrency market upswing could benefit XRP.

However, there’s also a risk of the price going down (bear case). Once the legal excitement fades, interest in XRP could drop, impacting its price negatively. Additionally, a general decline in the cryptocurrency market could drag XRP down with it.

Another concern is the actual use of XRP in Ripple’s system. Some experts believe XRP is unnecessary and doesn’t significantly impact the functionality. Even if used, the value of XRP wouldn’t directly affect the system’s ability to process payments, making a price increase less likely.

Therefore, long-term value might depend on improving the token’s design and functionality within the system.

Remember, this is just an overview and doesn’t guarantee any specific future outcome for XRP. It’s vital to do your own research and understand the risks involved before making any investment decisions.