XRP is currently taking the seventh spot in the crypto rankings, with a market cap of over $32 billion. You can buy Ripple for around $0.58 per coin, but is the low price enough to make it an attractive investment?
While the rankings are encouraging, the fact that the US Securities and Exchange Commission filed a lawsuit against Ripple worries many investors. The good news is that the legal process is close to an end, with a partial victory for both parties. Following the final judge’s decision, Ripple has many reasons to be happy. Has that affected XRP positively, and what should you consider before investing in XRP?
The Timeline of the Ripple vs. SEC Battle
The Ripple vs. SEC lawsuit has been in the news for almost four years. It might be best to follow a timeline to understand all the details correctly. Here is a chronological order of how things happened:
- December 21st, 2020. SEC decided to charge Ripple and its two executives for offering unregistered securities. The regulators claim the funds Ripple raised via public offering in 2013 and later failed to comply with relevant federal laws. The lawsuit specified that they hadn’t registered the offering with the SEC. The fine demanded for Ripple was $2 billion, considering that the SEC’s investigation concluded that the company and the executives gained over $1.3 billion via unregistered security offerings.
- March 2021. XRP faced the first consequences soon after the lawsuit, considering that Coinbase delisted it. Ripple’s executives argue that the SEC didn’t offer fair notice, meaning that market participants didn’t have clear guidance available.
- March 22, 2021. An important hearing took place on this day. Judge Sarah Netburn expressed that XRP is different from BTC, ETH, and other crypto assets because it has currency value and utility. That was important for Ripple because currency and security are two different things.
- The rest of 2021. Hester Pierce from the SEC released the Token Safe Harbor Proposal 2.0. The document states that token developers have a 36-month grace period, during which a security law exemption is applicable. The court requested the SEC to submit its internal policies regarding crypto trading and also consulted experts on security and cryptography.
- September 17th, 2022. Both parties sent the initial summary judgment motions. It was a huge breakthrough in the process, considering that both outlined their positions and arguments.
- July 13th, 2023. Judge Torres, in charge of the case, officially ruled that XRP wasn’t a security. Many crypto exchanges, such as Coinbase and Kraken, announced that they would bring XRP back to their platforms. It essentially marked a victory for XRP.
- October 23rd, 2023. Judge Torres approved the decision of the SEC to dismiss the lawsuits against Ripple executives voluntarily.
- August 7th, 2024. A summary judgment ordered Ripple to pay $125 million as a fine for selling unregistered securities to institutional investors. That sum is only a small fraction of the $2 billion amount that the SEC requested, which Ripple believes to be a victory. On the other hand, the regulator argued that the court still confirmed that companies selling and offering investment contracts must comply with the securities laws. Several outstanding issues remain, and the SEC could still appeal the decision.
Last News and XRP Price: The Correlation
The initial effect on the XRP price was overwhelmingly positive. It was on August 8th, 2024 when the news about the case ending reached the public. It took only 90 minutes for XRP’s value to increase from $0.5018 to $0.6373, which is a huge 27% jump!
That surge might have been a bit unrealistic, so the news only had a temporary effect. The rest of August has seen a largely negative trend for XRP, indicating price stabilisation. XRP’s value per coin was $0.583 on August 28th — an approximate 8% drop.
These movements are an excellent example of how important industry events affect one or multiple cryptos. The end of the lawsuit had a direct positive influence on XRP, and day traders could have profited if they acted on time. The drop in price in the coming days also wasn’t a surprise since stabilising a crypto’s value is what follows after some huge news disrupts it.
In the long term, Ripple believes this will impact their business and cryptocurrency positively. Don’t forget to understand what you need to know about XRP before pursuing this asset. Learning about how the payment method works and its practical uses is important when choosing whether to invest in XRP.
Future Perspective of XRP Price Dynamic
Major crypto predictors all adjusted their price forecasts following the lawsuit news. They mostly agree that XRP has a positive future ahead, with the only difference being how much it will gain in value. Here are some estimations found online:
- 2024. In the remaining months, Ripple can exceed $1. More realistic forecasts put the token at a maximum of $0.77.
- 2025. It could be a breakthrough year for XRP, considering that most predictors think it will go above $1. Some even put it as high as $1.46.
- 2026. The estimations vary from $1.22 to $1.66, indicating this will mostly be a year of stabilisation.
- 2029. XRP could be worth anywhere from $2.77 to $4.38 this year.
- 2033. The big question is whether Ripple could reach $10, although some investors think it might even go beyond $20.
Ripple could be happy following the lawsuit results. The fine is lower than the majority expected, but they did break the law. And although they can now work on repositioning the company in the US market, they will also be watched closely by the SEC and other regulators. If XRP wants to remain successful, the company must look to avoid further legal issues. If that occurs, there’s no doubt that the XRP’s future will bring exciting things.
