Ripple’s cryptocurrency, XRP (CRYPTO: XRP) has witnessed an amazing year, more than doubling in 2021. It managed to surge despite facing several headwinds. Ripple Labs, which is the parent firm of Ripple exchange that operates XRP’s payment and network protocols, is currently in the midst of litigation with the SEC.
XRP offers swift international transactions with comparatively lower costs. Investors are quite bullish on XRP and believe its performance in 2022 will be as fantastic as its run last year.
Let’s find out whether crypto investors should consider diving into this stock in the upcoming days.
Lawsuit resolution to provide certainty
Irrespective of the sector, investors do not like uncertainty. Most wish to steer clear from any businesses that are embroiled in a lawsuit or any kind of controversy. This is because these uncertain outcomes could provide significant downside, and most investors are risk-averse.
Ripple and XRP are currently going through massive uncertainty. Ripple Labs is stuck in litigation with the SEC, which claims that XRP tokens should be classified as a security. The matter is now being contested in court.
The court delayed the hearings primarily due to the pandemic, thereby increasing the uncertainty for investors. Hearings have been adjourned to February 2022. While there is a possibility of a resolution this year, many feel this lawsuit might go on for quite some time.
However, some investors bullish on XRP and its potential may look at this recent dip from its highs as a reason to take on exposure to XRP. That said, given XRP’s price fluctuations of late, it appears the market is waiting for some sort of resolution before stepping in.
Ripplenet is a game-changer
The creators of XRP designed the token to have real-world use. Ripplenet is the global payment platform for XRP. It is a decentralized network that uses XRP token and XRP ledger to offer a worldwide payment platform for its users. This highly efficient payment platform has become quite popular and influential.
Ripplenet has been highly beneficial for customers carrying out international transactions. International transfers usually come with a hefty currency fee, and often take up to a few business days for the transaction to be cleared. With Ripplenet, one can easily bypass these inconveniences.
Ripplenet offers an efficient, faster and cheaper option to settle international transactions. This network is the key bullish driver behind why many investors consider this top blockchain network, and XRP, as an investment right now.
Bottom line
Personally, I think there’s too much uncertainty with XRP to warrant a bullish take. Indeed, this token is one that has quite a bit of hair. Any SEC-related matters are likely to turn off many investors, for the time being.
That said, a resolution of these key issues could be bullish for XRP. Accordingly, this is a token that may be worth keeping on the radar. Right now, that’s what I’m doing.
