Ripple is the technological company that has developed Xrp (Crypto: xrp)Digital currency from the big XRP book. Ripple uses this blockchain platform to provide cross-border payment solutions to banks and other financial institutions such as merchant service providers.
The CEO of Ripple, Brad Garlinghouse, recently gave the XRP holders of good news, long -awaited: the Securities and Exchange Commission (SEC) abandoned his trial against the company. XRP has advanced more than 10% since the announcement, but some investors think that the next stop is $ 5. This implies more than 100% of its current price of $ 2.45.
Is it realistic?
In 2020, the Commission of securities Pursued Ripple for having allegedly sold XRP tokens as not registered titles directly to institutional investors and indirectly to retail investors. In 2023, an American district court issued a shared decision. The judge said that direct sales to institutional investors had violated the securities law, but that indirect sales to retail investors have not done so.
Ripple was ordered to pay a fine of $ 125 million, much less than the penalty of $ 2 billion proposed by the SEC. Last year, the SEC appealed the decision, reaffirming its conviction that XRP sold to retail investors was a violation of the securities law. But the CEO of Ripple, Brad Garlinghouse, told Bloomberg on March 19 that the SEC had abandoned its appeal, which means that the company is no longer linked to a legal battle with the regulator.
XRP makes payments cross -border more quickly and cheaper. It is an alternative to SWIFT (Society for Interbank Financial Telecommunications), the system that most banks use to facilitate international monetary transfers. Rapid payments often cause high fees due to the involvement of intermediaries and may take days to pay. But XRP payments settle in a few seconds and cost a fraction of a hundred.
Above all, the XRP offer is limited to 100 billion tokens, but this figure actually decreases over time because a small amount of the currency is destroyed with each transaction. Thus, the future price of XRP depends entirely on demand. And there are several reasons to think that demand will increase. First, the SEC abandoning its call could make Ripple’s payment solutions more attractive for financial institutions.
Second, Ripple recently introduced a stablecoin called Ripple USD (Rlusd), which serves as less volatile bridge currency for international monetary transfers. This could create XRP demand directly and indirectly. RUSD payments on the large XRP book still incur transaction costs which must be paid in XRP, which adds directly to the request. Likewise, Rlusd can lead to more decentralized applications on the blockchain, which would add indirectly to the demand.
