Despite being the subject of an SEC lawsuit, Ripple Labs’ native token has achieved extraordinary success.
30 Percent Increase in Ripple Despite Market Challenges
Over the course of the weekend, Ripple’s XRP has been on an upward trend, helping it to overcome larger market problems and achieve new highs.
As of this writing, XRP has gained 30% over the past 24 hours after breaking through the $0.50 barrier. Based on today’s trading, it appears as though XRP will add to its previous week’s gains of over 62%. XRP, meanwhile, has risen to the sixth-largest crypto coin by market cap and is making a push for the top five.
Moreover, whales are increasingly stockpiling XRP tokens. Since 2020, the number of active whale addresses with between 1,000,000 and 10,000,000,000 coins has increased, per Santiment’s analysis. Santiment also noted that XRP was boosted by Ripple’s optimism over the pending litigation.
The View from the Bench: Brad Garlinghouse
In December of 2020, Ripple was hit with a lawsuit from the SEC about the distribution of XRP coins.
The sale of tokens during the ICO in 2013 was deemed by the regulator to be subject to securities law. Thus, the stock market was accused of engaging in an unregistered public offering of securities.
In response, Ripple stated that it had not broken any rules, as it had for the preceding two years. Despite the regulator’s accusations, the exchange maintained its innocence.
The CEO of Ripple, Brad Garlinghouse, recently stated that they expect to win the case when they appeared on Fox News.
Garlinghouse continued by saying that the regulator does not follow the law but rather its demands. According to the company’s CEO, XRP does not qualify as a security because Ripple has not entered into any investment agreements involving the coin.
The regulator has been sitting on the Hinman speech despite the court’s instruction, which was discussed by Garlinghouse.
The CEO of Ripple responded to Jamie Dimon’s claim that the bitcoin industry is a Ponzi scheme.
Indeed, Garlinghouse has long been on the side of those who are opposed to the digital asset business, including the powerful figures he mentioned, such as Warren Buffett and Jamie Dimon. But the CEO has assured everyone that cryptocurrencies will be around for the long haul, no matter how loud the voices of opposition get.
Could We See Another Crypto Market Crash Soon?
The crypto market has gone into a tailspin as a result of the Federal Reserve’s hawkish action to combat inflation. There has been a rate hike by the Federal Reserve to 75 basis points, and experts say we can expect another hike to 100 by the end of the year.
As cryptocurrency values continue to drop, the industry as a whole is preparing for the worst. Ethereum and Bitcoin, the two biggest cryptocurrencies by market cap, have both experienced major value losses. Further, following the Fed’s latest action, most cryptocurrencies have been trading in the red.
The young industry may have to endure a gloomy era once again. But random upswings are always a possibility here.
