What does it take to start your own business? You need a great idea, the will power and most importantly – Legal Authority.
But even if you have all those things going for yourself then there are still many steps that can end up defeating any progress made. What Ripple Labs has been trying to do now goes beyond just being difficult: they’re fighting tooth-and nail with the Regulatory Authority who consider their operation illegal.
The affair dates back to December 2020, when the all-powerful U.S Securities and Exchange Commission (SEC) initiated a multi billion dollar lawsuit against Ripple Labs’.
The SEC believes (and still does) that production and marketing of XRP cryptocurrency as of 2013 was an illegal activity because it disregards regulations which require investors to be warned about risks involved in trading digital currencies.
The lawsuit between Ripple Labs and the US Securities Exchange Commission has been going on for over a year now, but it seems that no one is backing down. The company claims they have always remained optimistic about their future prospects as XRP holders should too. By the date of December 22, 2020 when this court battle began, Ripple had dropped about 84% to $0.53.
Few months after that drop XRP price started to surge again till $1.966 and after a year (april 22) prices are now around 0.65$.
At the same time, it seems that Crypto’s market cap didn’t bear any issue related to the law-battle which is evolving these days.
The XRP capitalization has grown by 50% in less than two years, despite a decrease of -4.46%. The rise of Ripple’s value can be seen over time as it varies between $20 billion to 31.65 USD.
On the other side, there are three main factors which are scaring the investors from the first time Ripple Labs appeared in front of the law.
- The market has seen a drastic decrease in volume, with about 80% fewer trades happening since December 2020.
- Network updates stopped and tumbled from a peak of 69.21 (registered the 4 september 2021) which is now valued 13 as of today.
- Social penetration of the token is at a standstill, meaning that no progress has been recorded in the last 24 months.
The same CEO of Ripple Labs, Brad Garlinghouse in a note said “Ripple Labs is operating as it lost the battle against the Securities and Exchange Commission of United States”.
In any case, XRP has lost its place as the third most valuable cryptocurrency.
Nonetheless, despite all the difficulties XRP still does better than solana (1.83%) and cardano(1 63%). Even if the latter two cryptocurrencies have very different natures which makes them incomparable in this case.
XRPs recent loss of the support at 0.75$ and 0.70$ is now in a downward trend. XRP is currently traveling at the price of 0.65 USD and even if this barrier gets broken there will be another movement towards lower levels.
The worst case scenario sees the token touching 0.56$ as it happened the last 24 January.
At press time XRP/USD is down by 0.75% trading at 0.64227
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