XRP community figure Anderson shares a vital document from the SEC v. Ripple lawsuit, showing that the regulator recognizes speculation’s role in driving XRP utility.
According to Anderson, the SEC understands that speculative trading and speculators are essential in starting up XRP “flywheel,” which enables the token to be integrated into Ripple’s products.
How Speculation Drives XRP Utility and Price
Notably, Anderson attached a document from the Ripple lawsuit to corroborate his claim. Per the document, the SEC cited an email Ripple CEO Brad Garlinghouse sent to board members on April 9, 2017.
Per the SEC, Garlinghouse told Ripple’s board members that a recent surge in XRP market activity and price was a crucial development for the company in the previous quarter.
According to the SEC, the Ripple CEO emphasized that speculative trading and market volume create the necessary liquidity for the company’s intended use for XRP, potentially serving as major catalysts for the token’s flywheel.
Reacting, Anderson said he does not understand why the SEC raised the matter as its argument. Nonetheless, the popular community figure stated that a significant surge in XRP price driven by speculation and substantial trading volumes would contribute to the token’s use in Ripple’s payments product, like On-Demand Liquidity (ODL).
Speculations Surrounding XRP Use in ODL
Although XRP has already been integrated into ODL, there are speculations that Ripple could replace the token with its upcoming RLUSD stablecoin.
Despite Ripple refuting this claim, some community members still believe the stablecoin would ultimately replace XRP in the cross-border payment solution.
However, Garlinghouse’s comments, as cited by the SEC, indicate that the company could continue to use XRP in its products as it witnesses tremendous price spikes fueled by speculation and market trading volumes.
XRP Underperforms as Appeal Deadline Nears
In the meantime, XRP is changing hands at $0.5896, with a 24-hour volume of $908.68 million. At the current price, XRP is up 0.09% in the past 24 hours and 0.25% in the weekly charts.
Although XRP’s recent performance has not been impressive, enthusiasts are confident that things could take a dramatic turn if the Ripple lawsuit does not go to appeal. Currently, the parties have less than two weeks to notify the Second Circuit about whether they plan to appeal, with the deadline set for October 7.
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Source: https://thecryptobasic.com/2024/09/24/document-shows-sec-recognizes-speculation-role-in-driving-xrp-price-and-utility/?utm_source=rss&utm_medium=rss&utm_campaign=document-shows-sec-recognizes-speculation-role-in-driving-xrp-price-and-utility