Ripple was once the third-biggest cryptocurrency in the market, reaching an all-time high market capitalization of $134 back in 2018. However, its lack of speedy development on top of the SEC lawsuit made XRP investors divert into other crypto projects. Ripple company never stopped working on good deals with big companies and even countries. Its market cap however is still shy, especially in this current bear market. What’s new with the Ripple SEC lawsuit? Is Ripple winning the lawsuit? Let’s tackle everything in this Ripple SEC update article.
What is Ripple Crypto company?
Ripple is a San Francisco-based FinTech company behind the global payment platform RippleNet. They basically created the XRP ledger blockchain along with its native token XRP. In fact, Ripple company started way back in 2004, before even cryptocurrencies were invented. They were trying to create an Internet of Value and create their own money, and RipplePay was created back then. Their network was small and the software was centralized. That’s why later in 2012, RipplePay merged with another company called Open Coin, and together they formed what is known today as Ripple.
What sets Ripple ahead of its Competition?
Through the Ripple project, users may quickly and reliably transmit, receive, retain, and move currency across international borders. Our existing method is cumbersome, costly, and dependent on banks and payment gateways. The Ripple firm can complete transactions from anywhere in the globe in 3 to 5 seconds. Indeed, it moves far more quickly than Ethereum and Bitcoin do!
The system is also very scalable and has a throughput of 1,500 transactions per second. Now, you might be wondering how this is all feasible. Well, RippleNet tracks, processes, and ensures all transactions using the open-source XRP ledger blockchain. However, XRP does not employ Proof-of-work and has no notion of mining, unlike Bitcoin. This indicates that the blockchain uses less energy and can maintain cheap transaction prices. The network and transaction protocol are maintained by an autonomous community of validation nodes, which handles XRP transactions.
Ripple also has fraud detection, sanction screening, and regulatory reporting in place, and they are anti-money laundering compliant.
What is XRP Token?
On the XRP ledger, XRP offers financial service providers on-demand liquidity. Additionally, it serves as a “bridge currency” to ease international trade. Transaction costs for XRP are 0.00001 XRP or 10 drops, or less than one penny per transaction at the current pricing. Payment service providers may access smaller markets, take advantage of quicker payment settlements, and save money on exchange rates using XRP.
The XRP ledger is open-source and maintained by a global and independent community, and Ripple is an active member.
Is XRP Centralized?
Both sides have strong arguments. Ripple Labs has no influence over when the protocol is made public. Code is executed by validators themselves. This is quite similar to how the team responsible for maintaining the bitcoin protocol functions. However, since Ripple is responsible for maintaining the protocol, it does have some influence over it. Therefore, Ripple can be successful if it decides to produce additional currency. For RippleNet, Ripple functions as a central bank. However, the validators may continue to manage the network on their own even if Ripple disappears. However, Ripple’s products that it makes available to third parties are not open-source and are instead operated by RippleLabs.
What is the Ripple SEC Lawsuit?
The SEC filed a complaint against Ripple in December 2020 for allegedly selling securities without the necessary authorization. This claim is obviously highly questionable. First off, cryptocurrencies were never regarded as securities and are unregulated by their very nature. Second, there are currently no established regulations or guidelines for cryptocurrencies. It is ludicrous to claim that Ripple was trading in unregistered securities.
Ripple SEC UPDATE: Why is XRP up?
In the past 7 days, XRP is up by around 25% while the crypto market is down by an average of 8%. While the bearish trend echoes in the crypto market, XRP managed to increase thanks to the hype around the lawsuit resolution.
James K. Filan, the defense lawyer representing Ripple, tweeted on September 18 that Brad Garlinghouse, the CEO of Ripple Labs, has submitted an early request for summary judgment. The next day, Brad Garlinghouse met with Caroline D. Pham, a member of the Commodity Futures Trading Commission. This comes following reports that a judge had been requested to resolve the continuing legal dispute between Ripple and the SEC.
The crypto community views the case mostly favorably. Some predict that if a settlement is achieved, the price will exceed $0.50. They are also hopeful about the prospect of a settlement because Ripple Labs is asserting that there is no investment contract in existence. The summary judgment motion is therefore regarded as a clever strategy that may result in a settlement by the SEC.
XRP Price Prediction – Where will XRP reach after the Lawsuit Resolution?
The cryptocurrency market currently is very bearish. However, XRP prices are going up despite this negative market sentiment. Expectations for XRP to continue upwards after the resolution is most probable. Specifically, prices should be able to reach the next resistance which is currently set around $0.60 when the Ripple SEC update comes out. If the crypto market manages to rebound higher, XRP can definitely see higher price targets such as the psychological price of 1$. For now, the $0.60 price mark seems like a safe bet for XRP.