Ripple is one of the most talked about coin.
– What has been affecting the Ripple coin price recently?
The on-going, never ending and changing lawsuit is one of the key uncertainties. SEC has a different angled strategy against Ripple through Wahi complaint. This added insider trading allegations against 2 other Coinbase employees and putting 9 other cryptocurrencies as securities. If the SEC wins the case, this would set a precedent and would cause more problems for the crypto industry as a whole.
This outcome for Ripple might affect their On-Demand Liquidity (ODL) service. And if U.S. banks are not going with the ODL plans, this will then weaken Ripple’s CBDC setup and investors will not be very happy.
– Where could the token be headed in the future
According to CoinMarketCap price prediction function, 1222 users voted and predicted that the price of XRP will be around $0.4905 by 30 September 2022. This is a 47.86% increase in the current price. I must say that the supporters are still considerably bullish on the coin and hope they can get out of the lawsuit quickly.
I am more realistic at this point. I hope to see more signed partnerships that are actually useful, not for PR purposes and see more real implementations in a larger manner, not purely news on how they help streamline Japan-Thailand money transfers. I hope to see more details. I am sure the investors at large want to see more too.
Ripple (XRP/USD) is among the top 10 largest cryptocurrencies by market capitalisation. Dubbed a “better alternative to bitcoin”, Ripple aims to futurise global payments.
However, in recent years the company has been caught in the midst of a US Securities and Exchange Commission (SEC) filing, with its native cryptocurrency, XRP, struggling to reach past highs…for over four years.
Down by 90.3 % since its 2018 all-time high of $3.3778, at the time of writing (5 September) the XRP to USD exchange rate stood at $0.3275. Can the token repeat the record levels, and what is the latest news on the SEC case?
What is XRP/USD and Ripple?
Ripple was created in 2011 by engineers David Schwartz, Jed McCaleb and Arthur Britto. They began developing the XRP Ledger (XRPL), a decentralised, permissionless, open-source, public blockchain.
The Ripple platform is a payment settlement system and currency exchange network using XRP Ledger Consensus Protocol. The network prides itself in its transaction speed, which according to its website, can take between three and five seconds and has low transaction fees that are “typically” under $0.01.
Ripple’s distributed consensus mechanism uses designated servers called validators, who have to agree on the order and outcome of transactions on the platform to enable them. Transactions are made in XRP coins, the platform’s native cryptocurrency.
The token can be sent to other users directly without the need of a central intermediary. XRP coins are freely exchanged on the open market and used in the real world for enabling cross-border payments and microtransactions.
Upon the token’s launch, XRPL’s founders gifted 80 billion XRP to the company. Ripple has since put the majority in escrow. As of August 2022, 44bn tokens remain in escrow.
What is your sentiment on XRP/USD?
XRP/USD price analysis
Unlike many of its rival cryptocurrencies that gained popularity in late 2021, XRP achieved its first success in the early months of 2018 as it was teaming up with a number of legacy financial institutions, like American Express and Santander. The token spiked to the all-time high of $3.3778 in January 2018, yet the rally was short-lived as XRP fell below $1 in late February.
After two years of fluctuating between $0.60 and $0.10, the XRP coin price rebounded to $1.8391 on 14 April 2021 amid wider cryptocurrency bull run.
Throughout the remainder of 2021, the XRP to USD chart suffered fluctuations, rising as high as $1.3894 at the start of September 2021 and dropping as low as $0.7993 by mid-December.
At the start of 2022, XRP was holding steady at $0.80. It dropped to $0.30 as Russia’s invasion of Ukraine and surging inflation started to affect broader cryptocurrency sentiment. As of 5 September, the current exchange rate of XRP to USD stood at $0.3275.
SEC’s case against Ripple
In December 2020, Ripple found itself in the midst of a SEC filing, which accused the company’s top executives, co-founder Christian Larsen and CEO Bradley Garlinghouse, of misleading XRP investors by selling $1.3bn worth of coins without reporting to the commission. The SEC had also accused the executives of profiting from the trade by around $600m.
In March 2022, the court denied the SEC’s request to strike Ripple’s fair notice defence, which argued that contrary to the case, the company did not receive a fair warning that its sales of XRP coins could be in violation of security laws.
In July 2022, Ripple won a ruling that will allow the company to access emails from the SEC about a 2018 speech where a former official declared that Ethereum was not a security. The evidence could help Ripple in arguing that XRP cannot be labelled as such. The SEC, however, continued to battle this ruling and filed a brief arguing that the speech drafts “are not relevant to any claim or defense in this case”.
The judge granted the SEC’s request to file a 90-page long reply to its motion that seeks to exclude the testimony of Ripple Labs’ witnesses.
The outcome of the court proceedings could remain the key factor affecting the movements on the XRP chart. As of 5 September, analysts and investors await 9 September, when both parties are expected to seal any portion of the filings together with proposed redaction.
Responses to the motion must be submitted by 16 September. Motions for summary judgement are expected by 15 September, and any opposition to that must be received by 18 October and answered by 15 November. The coming months will be of great importance for Ripple enthusiasts.
On 21 July, the SEC filed a complaint against Ishan Wahi, Coinbase’s manager in its assets and investing products division, and two other employees, accusing them of insider trading and securities fraud. In the filing, the commission noted that the nine coins Wahi and other defendants traded were “crypto asset securities”.
XRP to USD forecast for 2022 and beyond
Despite the latest downward price action, algorithm-based forecasting service Wallet Investor gave a bullish XRP to USD crypto exchange rate prediction as of 5 September. The site noted that XRP is “an outstanding long-term investment”, adding that it has a long-term earning potential amounting to 284.71%.
Based on its analysis of past price performance, Wallet Investor predicted that the token could trade at $0.517 in 2023 and reach $1.258 by 2027.
By the end of 2027, the site predicted that the exchange rate of XPR to USD could reach $1.63. The website’s long-term forecast for the token showed that the cryptocurrency could surge to $4.63 by 2030.
Mark Fidelman, founder of SmartBlocks, was bullish on XRP to USD exchange rate, yet noted that the outcome of the SEC case will play a crucial role in shaping Ripple’s future.
“If [Ripple wins] the lawsuit, it should be heading back up to over a buck by the end of year, maybe more…It’s more effective and more efficient than anything that the banks are doing, so it should scare the banks and should help crypto,” he told Capital.com.
Note that predictions about the future of XRP can be wrong. Forecasts and analyst expectations shouldn’t be used as a substitute for your own research. Always conduct your own due diligence looking at the latest news, price charts. technical and fundamental analysis.
Remember that past performance does not guarantee future returns. And never trade money that you cannot afford to lose.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.