The XRP coin is also one of the most important and popular cryptocurrencies on the market in 2023. XRP has worked hard for this position in recent years. The Ripple network has continued to grow in recent years and has been able to form more and more cooperations with large financial companies. But Ripple’s XRP could lose value massively if Ripple loses the legal dispute with the American Securities and Exchange Commission. What is the probability of this happening in 2023? Will XRP become worthless in 2023? Or will XRP soar high?
What is XRP?
The XRP token is the digital asset on the XRP ledger, which provides on-demand liquidity for financial service providers. It also acts as a bridge currency to facilitate cross-border transactions. XRP’s transaction fees are 0.00001 XRP or 10 drops, which at today’s price is less than 1 cent per transaction. With XRP, payment providers can reach smaller markets, enjoy faster payment settlements, and reduce foreign exchange costs.
The XRP ledger is open-source and maintained by a global and independent community, and Ripple is an active member.
What is the Story of Ripple and the SEC case?
Back in December 2020, the SEC slammed Ripple with a lawsuit for allegedly selling securities without a proper license. Of course, this statement is greatly debatable. First, cryptocurrencies were never considered a security, and by nature are not regulated. Second, there are no clear rules or specifics around cryptocurrencies yet. Ruling out that Ripple was dealing in a security that is not registered is plainly absurd.
The price of XRP immediately took a toll for the worst and dropped to USD 0.18 following the news. On the other hand, Block.one, the company behind EOS had the EXACT SAME allegations with the SEC, and they managed to settle within 1 year. Currently, there are many speculations that Ripple company is going to do the same.
How has the XRP price moved in the last few months?
Due to the heavy losses in 2022, the XRP price was at a much lower value at the turn of the year than at the peak of the bull market. But we must also not forget that the all-time high of XRP is still in 2018. At the beginning of 2018, the XRP price reached $3.84.
In the past few weeks, the XRP coin has surged from $0.30 to $0.55. This is down a quarter from the peak in the 2021 bull market, which was $1.60. The increase was significant but only marginal in the long term.
What is the biggest problem for Ripple in 2023?
The XRP coin has seen a strong price increase in the last few weeks and could continue to rise in the coming weeks. Nevertheless, XRP has a big problem for the year 2023. Because the legal dispute with the American Securities and Exchange Commission SEC continues to swell.
In this legal dispute, Ripple and its founders are accused of having participated in illegal securities trading. A crucial question is whether the XRP coin can be regarded as a security or whether it is not part of this asset class. The clarification of this question will decide whether Ripple and the XRP coin will suffer a lot of damage or whether it can regain trust.
Will XRP CRASH in 2023?
A decision in the legal dispute should be reached in the coming weeks and months. There are always new updates from the process. More often, the XRP course could make some jumps when there was positive news about the process. Nevertheless, the uncertainty is still great.
The FTX token was assessed as “security” in the USA in the context of insolvency and possible criminal activities. This is bad news for XRP as a precedent could be set here. Furthermore, SEC boss Gary Gensler clearly only sees Bitcoin as a commodity and all other cryptocurrencies as securities.
If the legal dispute develops negatively for Ripple, the XRP price could collapse in the coming weeks and months. Because a guilty verdict would mean a massive loss of confidence.
Is it still worth investing in XRP?
Despite the high risk, there is still a possibility that the litigation could turn out positive for Ripple. In this case, the XRP coin could increase in value massively. An investment in XRP is therefore extremely speculative at the moment. If you are looking for a speculative asset, then this is now the XRP coin.
How to Buy XRP?
There are many exchanges that sell the XRP token. Taking into consideration the biggest, here’s a list that we at CryptoTicker recommend:
If you are trading CFDs, eToro is a good alternative to buying the actual tokens and trading the price differences instead of worrying about the safekeeping and security of cryptos.
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Source: https://cryptoticker.io/en/is-xrp-worthless-2023-will-be-decisive/