With the US Securities and Exchange Commission lawsuit against the crypto Ripple, its effect on the native coin XRP is damning. But with how things are being played out, it seems like the lawsuit is about to take a turn in favor of Ripple. As such, the Ripple price is expected to rise since the coin is so valuable. This is because XRP is recognized by hundreds of global gateways, making it easy for people to convert money from their local fiat currency to XRP and back with ease. Overall, there is growing optimism that the XRP price will rise despite the SEC lawsuit, and here is why.
Ripple is about to win over the lawsuit
With the SEC suit against Ripple claiming they allegedly sold over $1.3 million XRP illegally, its effect should be damning on XRP. But there is hope that the lawsuit the SEC filed against Ripple is about to come to an end in favor of Ripple. This is because, in the discovery hearing with the Magistrate Judge of the case, she ruled the case was flawed and unfounded. The hearing showed that the case against Ripple is based on an illogical premise. Moreover, SEC probing XRP is out of their statutory authority, leaving many believing SEC is simply misusing its power. As such, this discovery has made investors more willing to invest in XRP, hence the reason for the expected rise in price.
1 billion XRP released amidst the lawsuit
Another positive sign that XRP price will rise after the lawsuit is because of the massive release of 1 billion XRP tokens amidst the lawsuit. The release of this massive XRP came in two transfers, 500 million XRP. This has been a tradition of Ripple as they have programmed the release of XRP every first day of each month. So, if the lawsuit could not stop the release of the new XRP, then it is a good sign that XRP has come to stay. Because for Ripple to be able to release a billion XRP to the crypto market, it means the company is still running its regular day-to-day activities.
XRP has been determined a currency
Despite Ripple being relatively a new startup, launched in 2012, it has attained such authority in the industry that makes it quite valuable. XRP has been determined by other branches of the U.S. government like the Treasury Department’s FinCen and Justice Department as a currency. Additionally, the XRP token falls outside the scope of federal security laws. So, the SEC suit is merely considered as a flex of power. Moreover, Ripple has begun its campaign against SEC suit before it was filed. As such, for a token like XRP with use-value to lose all its value over an illogical premise is quite unlikely.
A limited quantity of XRP
Unlike other cryptos, XRP is unique as there is a very limited supply of it. XRP can only have a finite quantity of 100 billion. This means that the token has the potential of its price rising over the chart, considering that the token is so valuable with multiple uses. Although right now with a billion XRP being released every first day of each month, affects the price. This is because the constant supply of the token is preventing it from being in high demand since everyone can get it from the surplus supply. But when the finite quantity of XRP is attained, its price will only go up, despite the SEC lawsuit.
XRP has multiple uses
As we said, XRP has multiple uses, even though it is limited to the Ripple Labs network. This makes the token very valuable because it can be used for in-app purchases, transferring money internationally, with smart contracts, and so much more. And because of the easy adoption of XRP, investors prefer to invest in it. And with the SEC lawsuit about to end in favour of Ripple, a larger audience will even use the token. If a large audience regularly trades it, then the rules of supply and demand will push its value higher.
To sum things up, while the SEC lawsuit against Ripple will have a lasting impact, it is not over for XRP yet. This lawsuit will always affect some investors, making them always doubt the token. But this doesn’t mean its price will always remain low. Although remember the crypto market is very volatile, hence it is hard to predict with certainty its price. But to give a long-term estimate, the signs suggest that XRP price will rise.