Ripple’s XRP is ranked at number 6 with a market cap of $37,004,075,270 in data by Crypto.co. On Jan. 4, 2018, XRP (Ripple) recorded an all-time high with its price of $3.84. From its total supply of 100,000,000,000 XRP, there are 48,135,209,660 XRP now in circulation. With its 50,000 TPS, it can process transactions in a matter of seconds with low cost and minimal energy making it more environmentally friendly as compared to BTC (Bitcoin). With this, XRP (Ripple) is definitely an ideal alternative for the most dominant crypto asset. Cryptocurrencies are characterized by their volatility and the altcoin is not at all exempted from price swings. But investors would take advantage of crypto assets volatility to gain profit, particularly for traders involved in scalping and spot trading. Everything was going well with XRP (Ripple) not until before the end of 2020.
On Dec. 22, 2020, Ripple was slapped with a lawsuit by the US SEC for allegedly raising over $1.3 billion through an unregistered, ongoing digital asset securities offering since 2013. Stephanie Avakian, Director of the SEC’s Enforcement Division stated:
“We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple’s business and other important long-standing protections that are fundamental to our robust public market system.”
Although lawsuits are not new to Ripple, this time it suffered a major blow. On the same day of the US SEC’s lawsuit filing, Bitwise Asset Management, one of the leading crypto fund managers since 2017, sold all its XRP (Ripple) holdings. In just three days, its price plummeted to 41% in Binance and was delisted by one crypto exchange after another. On Dec. 29, 2020, XRP (Ripple) price dropped to as low as $0.171 in data by Crypto.co. On the same day, Ripple Labs issued a statement following the massive XRP delisting by leading crypto exchanges and crypto businesses.
“The public and press have only heard the story from the SEC’s side, and we’ll be filing our response in a few weeks to address these unproven allegations against Ripple.”
Ripple Labs reiterated that the attack was aimed not at Ripple alone but at the crypto market as a whole.
“The SEC’s decision to file this action is not just about Ripple, it is an attack on the entire crypto industry here in the United States. We’ve always said that there is a dangerous lack of regulatory clarity for crypto in the U.S. — their lawsuit has already affected countless innocent XRP retail holders with no connection to Ripple.”
Then comes the US Presidential election with Joe Biden winning the presidential seat. The appointment of Gary Gensler as the new US SEC Chief gave Ripple CEO Brad Garlinghouse some optimism. But despite the blow caused by the US SEC lawsuit, Ripple continued to expand its market to other regions like Asia. On April 11, 2021, XRP (Ripple) price rallied and breached the $1 mark following a back-to-back victory over the lawsuit filed by SEC and a possible relisting with exchanges and other crypto businesses.
The consecutive market crashes have made the prices of major cryptocurrencies including XRP (Ripple) decline. But despite these market crashes and the struggles as a result of the US SEC lawsuit, the XRP (Ripple) price slowly recovered.
XRP (Ripple) was relisted by crypto exchanges and crypto businesses that have once delisted the altcoin. In February, XRP (Ripple) price surged following news about soon-to-be-unsealed documents that will expose a key flaw in the SEC case against Ripple. Ripple General Counsel Stuart Alderoty commented on the matter.
“Once released, these documents will show that in 2012 Ripple received a legal analysis that XRP was not an investment contract. The fact that it took the SEC eight years to suggest they disagreed with that analysis — while XRP traded in a massive global market — is baffling.”
As the US SEC and Ripple saga continues, there are speculations that the final verdict will be released by the end of 2022. The lawsuit has hindered XRP (Ripple) further adoption in the real world, particularly in the financial industry. If Ripple will come out victorious, this will have an immense effect on regulations that will be implemented in the entire crypto industry. It will also result in the altcoin’s price skyrocketing. The whole world is watching how things will unfold – but most especially the crypto proponents. But even though the case is still unresolved, XRP (Ripple) has secured its place as one of the leading cryptocurrencies in the crypto market today. Amid the recent market dip, XRP (Ripple) is now at $0.775272 and remains a strong contender for BTC (bitcoin).