Why is the XRP (Ripple) price up 60% in the last ten days?
Analysis and predictions

Why is the XRP (Ripple) price up 60% in the last ten days?

Going from $0.36 to $0.58 in ten days, a rise of around 60%, the XRP (Ripple) price has created a surprise. Several reasons can explain this sudden upward movement.

One of the reasons, carried by the feeling of many investors that the crypto startup Ripple could soon win its lawsuit against the American regulator SEC which has already lasted two years.

Indeed, while the latter has stagnated for months, the crypto currency has gained more than 18% since Tuesday, and 22% in the space of a week according to Coinmarketcap. In the short term, it is performing better than bitcoin and ether, which have suffered slight turbulence since the sanction of the American regulator, the CFTC, against Binance.

Ripple XRP versus SEC?

There are indeed some elements working in favor of the XRP crypto asset that is at the heart of the SEC’s lawsuit, which believes that the XRP cryptocurrency is an unregistered financial security, and not a simple crypto exchange token like Bitcoin (BTC) or Ethereum (ETH) can be. For the SEC, XRP is considered a security, according to the Howey test.

“XRP is a raw commodity that trades in commerce and one XRP is considered equivalent to all other XRP. That’s pretty much the definition of a commodity,” David Schwartz, the chief technology officer at Ripple, had said.

Recently, the complaint filed against the crypto exchange Binance by the regulator CFTC thus indicates that some cryptos like Ethereum (ETH), or Litecoin (LTC), are commodities, and not securities, as the SEC tries to make out in its repeated lawsuits against crypto companies.

According to the statements of the CFTC regulator, the XRP token could very well fall within this framework as well, and be considered a commodity in the same way as Ethereum or Litecoin mentioned in the complaint against Binance.
The SEC considers that only Bitcoin is a commodity, and that all other altcoins are financial securities.

Another factor in XRP’s favor in its legal battle with the SEC is the recent decision by the judge in charge of the Voyager buyout case against Binance, who rejected in toto the SEC’s objections that the buyout transaction would involve the possible sale of unregistered Voyager crypto financial securities.
Unable to prove that the Voyager crypto (VGX) is indeed an unregistered financial security, the SEC was denied.

In the case of the Ripple vs. SEC lawsuit, the regulator is also going to have a very difficult time proving that the XRP token is indeed an unregistered financial security with U.S. regulators, even though it is used as a liquidity asset on the XRP Ledger (XRPL) exchange network, among others.

This could then lead to a victory for Ripple (XRP) in its lawsuit against the SEC.

Article written by:

Laeti Marison, also known as SatoshiBelle, is a multifaceted professional with a passion for community management, content creation, and digital marketing. With a diverse background in various roles, Laeti has consistently demonstrated her expertise and dedication in the field. Recognizing her potential, Laeti then took on the responsibilities of a Project and Community Manager at Magna Numeris and Cartam from November 2018 to March 2021. In this role, she showcased her ability to successfully lead projects and foster strong relationships within the community. Currently, Laeti serves as an SEO content writer, Digital Marketing Manager, and co-founder at Trendingcrypto.news magazine, starting from February 2022 till now. Through her expertise in digital marketing and her passion for the crypto industry, she has contributed to the success of the magazine, ensuring its content remains relevant, engaging, and informative.

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