Investors’ Eyes Glued At Ripple-SEC Verdict
Ripple is once again drawing attention towards XRP because of the upcoming verdict of its dispute with the Securities & Exchange Commission (SEC).
SEC had questioned the legal status and the very foundation of Ripple’s cryptocurrency ‘XRP’ by alleging it to be ‘securities’. The battle has taken place between Ripple Labs and the US SEC for a long time but the matter is still to be resolved.
On this basis, SEC exercised its power as a security regulator by taking enforcement action against Ripple. The fate of XRP i.e. whether it was a ‘security’ or ‘cryptocurrency’ was to be decided by a court in a lawsuit.
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At present, everybody is anxiously awaiting the ruling of the court on the issue as both sides have completed their submissions.
Rumors suggest that the Court decision will come out soon and this rumor has subsequently been drawing huge investors’ interest in XRP. The investors are confident that the verdict is going to fall in favor of Ripple Labs.
They are hoping that the situation may change around XRP once the decision comes in favor of Ripple Labs. The investors that have parted themselves from XRP due to the Ripple Labs lawsuit will return to the asset.
The interest for XRP is an ‘open interest’ which means that the tides can turn on either side. However, the word in the crypto industry is that Ripple i.e. XRP is going to win the case against SEC.
If the rumor becomes true then it would be a win-win situation for Ripple as well as its past, present, and future investors. They will increase their investments in favor of XRP, acquiring as many tokens as possible.
Currently, investors are buying open interest in XRP in the hope that the XRP-favored verdict will substantially boost its economy.
However, if XRP loses its case to SEC and the Court declares XRP to be ‘security’ then investors’ loss would be unthinkable.
In fact, the situation would be no less than an ‘investors’ disaster’ not just for XRP but for all cryptocurrencies and altcoins.
Resultantly, crypto and altcoin markets would be subject to increased and unrestrained regulation and supervision by the regulator concerned.
Investors’ Hopes and Expectations
Currently, investors are treating XRP as an opportunity where they can place small bets and win huge. They are depending on the rumor that the verdict of the dispute would declare XRP as ‘cryptocurrency’ and not ‘security’.
Resultantly, the verdict will accelerate the boom in XRP’s economy which, since last week, has surged by nearly 60%. The surge showcases a high level of performance which XRP hadn’t seen in more than 300 days.
When an asset’s open interest showcases an increased side by side with the increase in the asset’s value, then that indicates an ‘influx’.
In turn, ‘influx’ also indicates that strong bullish are going to prevail and hence the upward trending in an asset’s economy is certain.
As of now, XRP’s bullish leverage traders could easily be seen dominating the market and the majority of crypto exchanges.
On other hand, the broader market got its influence from the XRP’s market. The influence then allowed the broader market’s leader, Bitcoin, to raise its value beyond $28,000 and eliminate the losses it inflicted the past week.
One of the major crypto market players namely Binance has been now under the strict scrutiny radar of multiple regulators in the US.
Binance’s scrutiny is also playing a negative impact on the overall crypto and Bitcoin markets. The situation further deteriorated when the US’s commodity regulator took the matter before a court of law.
Upon knowing that Binance has been sued, the crypto market’s response was devastating which further send a surge of reduction into the industry.
However, luckily XRP seems to have been enjoying the exception as the Binance effect failed to bring any impact on Binance.