Why XRP Is Still In The Fight?
It appears that Ripple will not concede anytime soon with its legal battle with the Securities and Exchange Commission. The company has been adamant about keeping its business in place despite the concerns raised by the government over the nature of its crypto products. Learn why XRP is still in the fight for its ever-growing market base.
For due process
In the name of justice and fair play, Ripple contends that the allegations of SEC were belatedly lodged in court. It argues that if indeed the company needs to register under the Federal Securities Laws, it would have been incumbent upon the government to send a notice so that the company could proceed to compliance. Unfortunately, it was only until this lawsuit that Ripple was notified of the necessity to register.
The fair notice rule suggests that Ripple is entitled to notice before being formally charged in court. At least it would have been given a chance to correct its shortcomings if any. A lawsuit would have been justified had the company evaded the mandate of the state. But none of this opportunity was afforded to the crypto company that was dragged into what has turned out as a legal circus. Hopefully, everything will be resolved soon.
For its investors
Despite the lawsuit, it is noteworthy that XRP has remained relatively profitable. It was only last year when investors were in for a treat with the upward trend in early 2020. This was a welcomed development following the price dip over the last quarter of the preceding year. Yes, the cryptocurrency has slowly redeemed itself from there. Thanks to the unwavering support of the user base, they are still hopeful that the storm will pass anyway.
There is so much potential from a crypto coin that has reached its record-high price of more than $3 in 2018. It is for this reason that subscribers have kept their faith in XRP. And the price forecasts have been convincing enough to draw more investors, if not more capital. Some experts predicted that there would be a long-term increase. This will sustain the optimism of investors amid the legal controversies being faced by the company behind the cryptocurrency.
For whatever it is worth, the much-anticipated outcome of the lawsuit would settle some issues and concerns. It would be a landmark decision that would draw the line between crypto-assets and financial securities. Should one coincide with the other, it would be expected to abide by the registration mandate. There are more questions than answers pending the decision of the court. Then and only then can the matter about cryptocurrencies treated as securities be settled.
There is a status quo at the moment. This is a much-needed time for crypto developers to refine their product models so that they will not be haunted by lawsuits anytime soon. At least some crypto players like Bitcoin have already gone through the scrutiny victoriously. They will no longer be pursued by the SEC for violation of laws arising from failure to register with the Federal agency.
For the crypto market
Meanwhile, a chilling effect in the market would be inevitable following the Ripple lawsuit. The impact was, however, short-lived since the crypto players were able to bounce back after some time. Investors in crypto exchanges such as Bitcoin Pro were assured that the problem was being taken care of. The legal team of Ripple has been doing its best to defend its cause. Whether or not this will end in settlement, it is good to know that the trust rating of the market is still impeccable.
An attack against one player may be seen as an attack against the crypto market. And, interestingly, the market is not likely to bow down to the challenge. It is ready to take on this threat as an opportunity for improvement. There is a good chance that the legal battle will be able to shed light on crypto assets and crypto operations.
These are the reasons why the XRP is still in the fight for due process, for investors, for clarification, and ultimately for the market. While there might be no reason to pull out your investment, it would be prudent to stay on guard. Remember that risks are always around.
Mustafa Al Mahmud is the Founder and CEO of Gizmo Concept and also a professional Blogger, SEO Professional as well as Entrepreneur. He loves to travel and enjoy his free moment with family members and friends.