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Ripple Could Push Higher if the SEC Suit Against Ripple Labs Ends

Ripple Could Push Higher if the SEC Suit Against Ripple Labs Ends
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ripple (CCC:XRP-USD) drifted down over the past month. After peaking on November 10 at $1.33 per token, it has been in steady sliding since then. As of December 12, the price of XRP-USD is 84.55 cents. This represents a decrease of more than 36% in one month. And while Ripple is currently being dragged by mainstream crypto trends, its legal battle with the Securities and Exchange Commission (SEC) could be a game changer in the crypto world.

Source: AlexeyIvanov / Shutterstock.com

Currently, XRP-USD is well below its peak of $1,839 on April 13, according to Coinmarketcap.com. However, so far this year, it’s still up 256% year-to-date from 23,744 cents at the end of December.

Ripple is now the eighth largest cryptocurrency in the world. It has a market capitalization of approximately $40 billion ($39.9 billion, as of December 12). It’s a little less USD . coin (CCC:USDT-USD), a stablecoin with a market capitalization of $41 billion, and Cardano (CCC:ADA-USD) at $44.9 billion.

Ripple is affected by big moves by Bitcoin and Ethereum

As one of the top 10 digital currencies, Ripple is also heavily influenced by the big movers and shakers of the crypto world. I am referring, of course, to Bitcoin (CCC:BTC-USD) And Ethereum (CCC:ETH-USD).

For example, Bitcoin is up 6.5% to $49,604 from a recent low of $46,581 per BTC token as of Dec 4. This was after it peaked at $68,365 on November 10. .

Similarly, XRP-USD has fallen from 72.63 cents on December 3 to 84.55 cents on December 12, an increase of 16.4% since its bottom.

Additionally, Ethereum was above $4,000 per ETH token back on December 12, after dropping to $3,849 on December 3, according to Queen Market Cap. But, gains, this is after it fell from a peak, also on November 10, at $4,844.

This all remained true on December 12th. But by early December 13, trends changed again as the cryptocurrency market experienced another wave of volatility. The price of Ethereum and Bitcoin is down more than 5%. Unsurprisingly, Ripple has been dragged and has fallen with it by over 3%.

So, you can see very clearly that Ripple is following the paths carved by Bitcoin and Ethereum, albeit on a more explicit basis. What that means is that it tends to have more volatility and variance, but its trend still appears to be determined by Bitcoin and Ethereum.

Ripple Lab’s legal battle

Ripple’s parent organization, Ripple LabsThe company that promotes XRP-USD is in the midst of a major battle with the SEC. The case revolves around whether the sale of XRP-USD is a sale of unregistered securities, as the SEC claims. I discussed this case in my previous article on Ripple and why some believe the company will win.

Back in November, Ripple went further as it outlined its own vision for the future of the US crypto regulatory framework.

Recently, Ripple Labs CEO Brad Garlinghouse told CNBC that he believes the case is coming to an end. according to telegraph coin An online magazine, Garlinghouse told CNBC that despite the slow judicial process, the case appears to have made progress. He said he believed the case would be over in 2022.

More importantly, he said, the judge in the case understands that the cases deal with more than just Ripple Labs. He said he liked the judge’s questions in the case.

What could this situation mean for investors

What is more interesting in this case is the fact that Ripple is looking to do an initial public offering (IPO) after the case is resolved. This is going to be very important for one big reason.

Almost all new releases of cryptocurrencies these days have been in overseas markets, not the US unlike recent crypto loans made by blockchains. dotted (CCC:DOT-USD), nearly all Initial Coin Offerings (ICOs) were made by non-US companies or by non-profit companies. These securities then begin to trade on non-US exchanges and eventually appear in the United States

This is why it is so difficult to buy just a few of the thousands of cryptocurrencies. There are only about 200 or so cryptocurrencies that are traded in dollars Coinbase Global (NASDAQ:Currency) and Crypto.com.

If the lawsuit ends, especially if it ends in Ripple Lab’s favour, the rules for listing coins, ICOs and other major issues for US investors may be clearer. It will also allow more cryptocurrencies to be listed in the US and for companies that sponsor them to do initial public offerings and initial coin offerings.

If that happens, expect to see Ripple move significantly higher as investors look forward to the Ripple Labs IPO.

At the date of publication, Mark Hack did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.

Mark Hayek writes about personal finance on mrhake.medium.com and runs Total Return Value Guide that you can review here.

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