As a seasoned crypto investor with experience in the market, I can’t help but be intrigued by the seemingly paradoxical situation surrounding XRP and its underperformance despite a string of positive developments for Ripple and the XRP Ledger (XRPL). Former Ripple director Sean McBride’s analysis sheds some light on this perplexing trend, attributing it mainly to the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC).
As an analyst, I’d like to share an interpretation provided by Sean McBride, a previous director at Ripple, regarding the puzzling decline of XRP‘s price despite numerous apparent positive advancements concerning Ripple and the XRP Ledger (XRPL). This assessment is particularly intriguing given that the market has been generally bullish, leaving many investors and industry insiders perplexed by XRP’s underperformance.
Why Is XRP Price Down Despite A Slew Of Positive News?
Although the cryptocurrency market has experienced robust growth in recent times, XRP has conspicuously underperformed during these periods. In a discussion with XRP users, McBride pointed to the ongoing litigation between Ripple and the US Securities and Exchange Commission (SEC) as the primary reason for this lackluster performance. He emphasized that forthcoming court rulings could significantly influence XRP’s value.
As an analyst, I’d rephrase it as follows: My analysis of the market shows that Judge Torres’s ruling on July 13, 2023, declaring XRP as not a security, triggered a significant price surge of approximately 100% to $0.93. This event underscores the market’s responsiveness to legal developments. However, eleven months later, XRP’s value has been cut in half, revealing lingering apprehensions regarding the SEC’s future actions and the likelihood of an appeal. McBride acknowledges this uncertainty, stating that a favorable ruling for Ripple is crucial to prevent such an appeal from taking place.
As a researcher studying the price trends of XRP, I believe it’s important to note that no substantial changes are anticipated in the XRP market until Judge Torres renders her decision. Anyone holding expectations for something other than the status quo may be deemed delusional. Once Judge Torres announces her verdict, we might gain some insight into the underlying factors at play. This could potentially pave the way for US institutions to collaborate more closely with Ripple, leading to significant developments. However, it’s crucial to remain patient and observe the situation unfold.
In spite of the ongoing legal distractions, Ripple has continued to generate positive headlines. Most recently, on June 11, 2024, Ripple unveiled the XRPL Japan and Korea Fund. This is a notable move with a 1 billion XRP investment earmarked for fostering expansion and advancement of the XRPL community in East Asia.
Ripple’s strategic purchases have drawn attention. They successfully completed the acquisition of Standard Custody & Trust Company in an undisclosed deal. In May 2023, Ripple continued to grow by purchasing blockchain firm Metaco for $250 million. Moreover, they announced plans to introduce a stablecoin in April, which is intended to strengthen the XRP Ledger platform.
As an analyst, I’ve observed Ripple’s strategic shifts with great interest. Contrary to some perceptions, Ripple is not infallible. Their executives do not emit rainbows when they pass wind, and not everything they touch turns to gold. It’s crucial to acknowledge that Ripple, like any other organization, undergoes self-criticism and encourages healthy debate among its employees. They embrace the concept of “disagree and commit,” allowing for open discussions and ultimately leading to refined strategies.
Significantly, Ripple has taken the initiative to obtain more than 40 Money Transmitter Licenses (MTLs) in the US, which are essential for its payment activities to comply with regulations nationwide. McBride added, “The next major step involves clear-cut legislation in the US. We’re hopeful that this is underway with the recent advancements in Congress and Trump’s reported support for cryptocurrencies (provided he gets elected as President).”
In response to a user’s question about the possibility of an SEC appeal if Ripple wins their case, McBride replied, “I don’t believe it would prevent the ongoing US situation from progressing, unless the decision goes against Ripple.”
In response to another user’s comment about a change in his tone towards Ripple and XRP, McBride reassured the community, “Absolutely not. I remain optimistic about Ripple and XRP. I’m a strong advocate, but I acknowledge the current situation.”
At press time, XRP traded at $0.4818.
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2024-06-12 14:10