The cryptocurrency world has been significantly impacted over the past months due to legal entanglements involving XRP and Ripple Labs. As XRP dipped dramatically in terms of value, drawing long faces within its community of holders, the coin has now found a comfortable zone at around $0.50, which might be a signal of market stability.
The heat between Ripple Labs and SEC is far from cooling down, as the last few months saw numerous developments. The coin bulls got a taste of optimism in July, when a federal judge demanded more details from the SEC on the classification of XRP as a security. While a positive verdict could catapult the value of XRP, the ongoing legal proceedings tend to create a cloud of uncertainty around it.
An interesting twist, however, is the fact that XRP’s adoption is on the uptick. Influential companies such as MoneyGram, Cuallix, and Flare Networks have announced their plans to utilize XRP for cross-border transactions, stating the fast, scalable, and low-fee ledger as the reasons. This expanding adoption, regardless of the SEC lawsuit, might prove to be favorable for XRP’s price.
Recently, the SEC has come forward with a new appeal against Ripple Labs, raising two critical questions concerning the programmatic sales of XRP by Ripple and their qualification as security offerings. The appeal also sparks doubts about the sales of XRP to RippleNet members and whether these transactions should be deemed as securities transactions.
Ripple Labs doesn’t entirely agree with the SEC’s appeal, asserting it to be premature and vouching for the upholding of the judge’s rulings. But this appeal, if it goes in favor of the SEC, could potentially harm the reputation of Ripple Labs and the value of XRP. The long-term outlook for XRP is positive, but the continued appeal by the SEC creates a sort of instability and potential for price volatility in the short term.
Bearing a contrary texture to the world of serious cryptos, the fun-fueled coin $WSM is capturing the attention of investors. Wall Street Memes, a community popular for catering to investors with a sense of humor and adventure, is behind the coin. With the presale of the Wall Street Memes’ crypto project delivering promising results, $WSM is an alternative coin that is worth considering.
However, despite these promising prospects, remember that cryptocurrencies are high-risk assets. They are subject to drastic price swings and potential total capital loss. Any decisions related to investments in such assets should be well-researched and made with caution.
Source: Cryptonews
