XRP price rise defies SEC crackdown on cryptocurrencies
Since early April, XRP's price surge has been supported by a flurry of tweets, which have been approaching relatively high levels.
After the U.S. Securities and Exchange Commission. (SEC) filed a lawsuit against Ripple, alleging that the company had agreed to sell $1.3 billion worth of securities. Since then, many famous exchanges in the world (including Coinbase) have started to remove Ripple's native crypto on their platform.
As a result, many people in the world believe that the slow and certain death of this once promising project is only a matter of time. However, XRP seems to have recovered dramatically since the end of the bad news, and the cryptocurrency's value has risen more than 100% since the beginning of April.
The SEC filed a lawsuit against Ripple Labs, alleging that it had engaged in the issuance of unlicensed securities since August 2013.
Not only that, the government agency also accused Ripple Labs of failing to register its personal sales of XRP (estimated value of $600 million) with the regulator.
As for Ripple's defense lawyer, he disputed the SEC's claim, saying that the XRP token is similar to other well-known cryptocurrencies, such as Bitcoin (BTC) or Ether (ETH), which are classified as commodities by the SEC. In addition, Ripple's legal team also emphasized the fact that it took more than eight years for the committee to file a complaint.
So what actually caused XRP's price to rise? The coin's latest rally was accompanied by the widespread rise of other established altcoins, such as EOS and Stellar (XLM), and the decline in the overall dominance of the BTC market.
XRP's performance is likely attributed to the positive news surrounding Ripple in the SEC case, especially in terms of the recent discovery hearing victory, which will force the SEC to turn over its internal documents related to Bitcoin and Ether.
This is a victory for Ripple and the entire cryptocurrency space, as these documents will hopefully help clarify the SEC's reasoning on the entire token.
For many years, XRP has been one of the most divisive cryptocurrencies in the crypto community, and its recent track record has begun to prove its critics right. However, the coin's recent appreciation has been quite normal.
Ripple's co-founder expressed optimism about the new cabinet and stated that his team plans to have progressive conversations with the new SEC executive team.
Ripple continues to prove that its potential is limitless, especially when operating in a cryptocurrency-friendly environment.
XRP is once again attracting attention on social networks
After Ripple acquired a 40% stake in Tranglo, the company's price and tweets immediately skyrocketed.
In the last week, the number of XRP-related mentions increased as the price of the token increased and the number of tweets also hit a new monthly high.
One thing to remember is that cryptocurrency markets in Asia and the Middle East do not yet have major regulators like the SEC to set the rules of the game.
On the one hand, this kind of framework makes promising new projects feel comfortable and can develop faster. However, on the other hand, it sometimes leads to the emergence of many scams.
Therefore, it is logical that, while trading platforms directly affiliated with the SEC are not involved with XRP are actively opposed and are contradicting the wishes of the Commission, unaffiliated platforms can begin to list a wave, especially if it will continue to show a high level of monetary traction in the near future.
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The lawsuite by ripple is a classic example of the future of clashes between the regulators and the crypto currencies world wide. The regulatory actions are no doubt going to increase but this case has set a precedence now