One cryptocurrency that should have exploded by now is Ripple (CRYPTO:XRP). The company is stuck in a controversy involving the U.S. Securities and Exchange Commission. Many lawyers and crypto analysts say the high-profile lawsuit could be over soon.
As of March 20, 2022, XRP (US$0.805924) is down by only 3% year to date. The sixth-largest cryptocurrency by market cap even outperforms Bitcoin (-10.22%) and Ethereum (-21.68%). Several industry players and crypto platforms forecast an explosion should Ripple win the legal battle.
According to most predictions, XRP could breach the US$1 mark before it reaches US$5, a realistic figure. The ace for Ripple right now is its fair notice defence. Magistrate Analisa Torres denied the SEC’s motion to strike out Ripple’s defense. Attorney Jeremy Hogan said it strengthened the defendants’ position.
The partner at Hogan & Hogan law firm believes that Ripple’s affirmative defense is more relevant for the lawsuit’s outcome, the futures of XRP and Ripple plus the entire crypto industry. Hogan said, “If the Fair Notice defence survives and Ripple wins, the SEC will have an uphill battle winning any lawsuits they bring.”
The damage to XRP
SEC’s lawsuit has inflicted damage and stalled XRP’s growth. Because of panic selling by holders, the crypto has lost 75% of its value. Also, about 50 crypto exchanges, including Coinbase, delisted or suspended trading of XRP. Ripple’s global payments platform and users for the XRP token and its fully centralized ledger are more than two million.
The World Economic Forum even noted that XRP is the most relevant cryptocurrency for central banks. According to published reports, financial regulatory authorities in Japan, Singapore, the U.K., Switzerland, and the UAE have already declared XRP as a currency, not a security. The SEC insists that Ripple Labs and two of its senior executives traded illegal, unregistered securities.
XRPArcade.com reported that over 360 different organizations use the currency as a means of exchange. It includes banks, money transfers, wallets, marketplaces, wallets, and about 150 consumer apps. However, the SEC said that XRP’s only utility is to be an investment contract in Ripple. It added that all crypto holders depend on Ripple’s actions to derive returns.
The XRP community continues to make price forecasts, notwithstanding the court battle. Some think the coming years should be a smooth time for Ripple and that the extension to the alliances and emerging innovations will raise XRP’s price between US$8 and US$10. Today, the crypto struggles to hit $1.
According to Oracle Times, if it is feasible for Ripple to become the best option for financial institutions to make cross-border payments, XRP could rise by as much as 2,000%. Wallet Investor has a more conservative forecast, although it said that XRP is an excellent long-term investment. It predicts the price to be US$3.80 by 2026.
Ripple’s popularity, despite the lawsuit stems from its technology’s bank-to-bank transfer mechanism. The speed of transactions’ confirmation only takes seconds. Crypto expert Roman Guelfi said, “Ripple’s price may achieve bigger milestones in the years to come.”
Ripple is confident it could obtain a favourable judgment from the court before the year is over. In case of a loss, the fight isn’t over. The defendants could appeal the ruling to reverse the decision.