Ripple's Resilience and Ambition: An In-Depth Look at XRP's case

13 cze 2023

Over the past few weeks, Ripple, the company behind the native token XRP, has been making waves in the cryptocurrency landscape. The convergence of several key developments has provided a bullish momentum for the company, strengthening its position and offerings in the digital asset arena. This article aims to dissect these significant developments and their potential ramifications.

1. Ripple Acquires Metaco: Expanding its Digital Asset Custody Capabilities
In a strategic move that underscores its commitment to growth and innovation in the digital asset space, Ripple acquired Swiss custody startup, Metaco for $250 million. Renowned for its secure digital asset management expertise across various applications, including blockchain technology, Metaco's incorporation into Ripple's operations promises to enrich its product offerings. This acquisition positions Ripple as an even more attractive option to financial institutions and individual users seeking comprehensive solutions for digital asset management.

2. Ripple Acquires Minority Stake in Bitstamp
Ripple has recently acquired a minority stake in Bitstamp, one of the oldest cryptocurrency exchanges, previously owned by Pantera Capital. The specifics of the transaction remain undisclosed, but the move reflects Ripple's intent to expand its global presence and diversify beyond payments. This strategic investment strengthens Ripple's long-standing relationship with Bitstamp, which has served as a gateway for Ripple's XRP token.

3. Ripple Unveils Its Central Bank Digital Currency (CBDC) Platform
As countries worldwide show heightened interest in developing their digital currencies, Ripple has launched a dedicated platform for Central Bank Digital Currencies (CBDCs). This innovative platform, built on a new private ledger that harnesses the power of the XRP Ledger, offers an end-to-end solution to central banks, governments, and financial institutions seeking to issue and manage their digital currencies. Ripple's CBDC Platform brings several advantages: ledger technology, issuer, operator, and end-user wallets are all part of the package. This comprehensive solution simplifies issuing and managing digital currencies, positioning Ripple as a critical partner for institutions venturing into CBDCs.

4. Ripple Unveils Its Central Bank Digital Currency (CBDC) Platformament to Ripple's Technological Prowess

Ripple's commitment to the CBDC space has been further reinforced with its inclusion in the Hong Kong e-HKD Pilot Program. As the only representative from the crypto sector, Ripple will leverage its extensive knowledge and experience in the settlement of tokenized assets. This involvement validates Ripple's technological capabilities and provides a real-world testing ground for its CBDC platform, potentially paving the way for future partnerships with central banks and governments.

5. SEC Court Rulings Favor Ripple: A Potential Game Changer

Recent court rulings have increasingly favored Ripple in the ongoing legal dispute between Ripple and the SEC, possibly setting a precedent for future cryptocurrency regulations. Central to the case is the Hinman letter, named after former SEC official William Hinman, who suggested in a 2018 speech that Ethereum should not be classified as a security. Ripple has sought public access to related internal SEC documents, believing they could support their defense that XRP, like Ethereum, isn't a security. On May 16, 2023, the court ordered these documents to be unsealed by June 13, 2023. Ripple's legal commitment, demonstrated by its projected $200 million in legal expenditures and recent victories and contradictions in SEC statements, may bolster its case that XRP is a digital currency, not a security. Despite the uncertainty surrounding the case's outcome, a win for Ripple could have far-reaching implications for the cryptocurrency industry. It could help solidify XRP's legal status in the US market.

Summary and price action
Ripple has proven its resilience and ambition through strategic initiatives, court victories, and partnerships. These developments, from acquiring Metaco and launching a CBDC platform to winning key court rulings and participating in Hong Kong's e-HKD Pilot Program, illustrate Ripple's potential to shape the future of digital currencies. The recent acquisition of a stake in Bitstamp further highlights Ripple's commitment to expanding its influence in the global cryptocurrency space. With these recent developments, Ripple strategically positions itself at the forefront of the rapidly evolving digital asset industry.

XRP has outperformed the entire market since the November 2021 peak, as it was one of the few tokens/coins that hadn't pumped much compared to the rest. In November 2020, XRP got hit by the SEC lawsuit and was delisted by all US exchanges, while most other coins remained on these platforms. Now Ripple is close to potentially even winning its case against the SEC, with some essential information coming out today, while the rest of the market is just starting to deal with the SEC. As seen by XRPUSD and XRPBTC, it looks like the chart is a massive accumulation base that is ready to explode higher. It seems like the market knows something and is anticipating a positive outcome from the court case. The SEC may lose many of its issues (against Ripple, Grayscale, and Coinbase), and these could boost the market massively. So even if Ripple loses this case, more fights could turn things around for XRP and the entire crypto market. Again, as XRP doesn't have to deal with delistings and is ahead of the curve, it is less risky than other coins/tokens, which might have a different fate.

21 paź 2023

Uwaga

Ripple continues making progress, with several significant legal victories against the SEC. Technically, the XRP price appears to have bottomed, but momentum still seems weak. Here is an update on the key developments between Ripple and the SEC:

The SEC v. Ripple case is a court case in the United States Southern District Court of New York. In December 2020, the SEC filed a complaint against Ripple Labs, Inc. and two of its executives, Bradley Garlinghouse and Christian Larsen, alleging the unregistered offer and sale of XRP, a digital token, as a security. The SEC accused Ripple of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP.

In July 2023, U.S. District Judge Analisa Torres granted summary judgment to Ripple on claims by the SEC that it peddled unregistered securities through sales to retail investors on digital asset exchanges. Those investors, Torres reasoned, did not know that Ripple was on the other side of the trades, so they could not have expected that Ripple would use their money to boost the value of the tokens. But the judge reached a different conclusion about Ripple’s XRP sales to sophisticated institutional investors. Ripple pitched those investors on its plans to make XRP an indispensable mode of blockchain payment. So, according to Torres, when Ripple sold XRP to those investors, it was engaged in securities transactions under the U.S. Supreme Court’s longstanding Howey test.

In July 2023, Judge Torres granted Ripple a partial win in the case, finding that sales of XRP on public exchanges were not unregistered securities offerings. Torres subsequently rejected a request by the SEC to appeal that ruling. She also ruled partly in the SEC's favor, saying the agency had shown the company's $728.9 million of XRP sales to hedge funds and other sophisticated buyers had violated the law. The SEC's claims against Garlinghouse and Larsen over their role in those sales were to be tried before a jury.

On October 19, 2023, the SEC dropped claims against two Ripple Labs executives, Brad Garlinghouse and Chris Larsen, in its lawsuit alleging the blockchain company violated U.S. securities law. The agency said in court papers it is dropping claims that Ripple Chief Executive Brad Garlinghouse and co-founder Chris Larsen aided and abetted sales of the cryptocurrency XRP which a judge has found amounted to unregistered sales of securities.

In summary, Ripple has had some wins in the case, with Judge Torres ruling in their favor on some claims and the SEC dropping claims against two Ripple Labs executives. However, the case is not yet over, and two defendants still await trial and final judgments on aiding and abetting the offerings.