The crypto market is currently in consolidation mode. However, XRP prices seem to be on the move higher. Expectations involving a resolution of the SEC case seem to be in sight. Now that the new year 2023 is just around the corner, why is XRP price up? Will 2023 be the year for a Ripple win over the SEC? Let’s recap what happened with Ripple and lay out what should happen in the coming few months.
What is Ripple?
Ripple is a technology company that offers a range of payment and financial products built on top of a distributed ledger platform called the XRP Ledger. The company’s main products include a global payment network called RippleNet, which is used by financial institutions and payment providers to send and receive cross-border payments, and a digital currency called XRP, which is used as a bridge currency to facilitate the transfer of value between different currencies. Ripple also offers a number of other products and services, including liquidity solutions and tools for managing risk and compliance in the payment industry. The company is headquartered in San Francisco, California, and was founded in 2012.
What is XRP Crypto?
The XRP cryptocurrency is a bridge currency that facilitates the transfer of value between different currencies. You can buy and sell XRP directly with other users, or simply at online exchanges.
There are 2 types of exchanges: Centralized exchanges (CEX) and Decentralized exchanges (DEX). You can find the difference between both in this article.
Why does Ripple have a lawsuit with the SEC?
In December 2020, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, Inc., alleging that the company had engaged in the sale of unregistered securities in the form of XRP, a digital asset created and distributed by Ripple. The SEC’s complaint alleges that Ripple and its two co-founders, Christian Larsen and Brad Garlinghouse, raised over $1.3 billion through the sale of XRP to retail investors, without registering the asset as a security with the SEC, as required by law.
Will Ripple win over the SEC?
Ripple has denied the allegations in the SEC’s complaint and has vowed to fight the lawsuit in court. The case is currently ongoing, and it is not yet clear how it will be resolved. However, Brad Garlinghouse tweeted on several occasions that he is confident that Ripple will win the lawsuit.
Ripple Lawsuit date: When will Ripple win?
By Q4 2022, Ripple was scheduled to resolve his legal dispute with the SEC (or at the very least have a settlement in the works). However, as a result of delays, the procedure was prolonged until 2023.
Analysts predict that the lawsuit will be resolved in Q1 2023. If everything works well for Ripple, the price of XRP might skyrocket. The FTX results, on the other hand, claimed that the FTT token constituted a security. Investors in Ripple were alarmed by this because it raised the possibility of a precedent in the Ripple case.
Why is XRP Price UP?
In the past 7 days, most cryptocurrencies are in the red. However, XRP managed to gain more than 5%. There are 2 reasons for this price increase:
- Technical reason: XRP reached its strong support price of 30 cents, which attracted buyers, hence higher prices
- Fundamental reason: The lawsuit is nearing its resolution. Despite being late, XRP should increase in price once the lawsuit is resolved. The date got pushed to Q1 2023.
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Source: https://cryptoticker.io/en/why-is-xrp-price-up-sec-lawsuit-resolution/