As Ripple and the SEC are embroiled in a lawsuit and a ton of court proceedings, many investors believe that the outcome will most likely be in favour of Ripple.
Ripple vs. SEC Lawsuit Summary
In case you didn’t know, a US financial regulator, the Securities and Exchange Commission (SEC), filed a lawsuit against Ripple Labs Inc. and its executives in 2020. And accused Ripple of raising over $1.3 billion through illegal means.
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Ripple Labs sold XRP tokens to raise $1.3 billion in capital between 2013 and 2020. The SEC believes that the company raised funds illegally because XRP was not registered as a security. However, XRP was offered to investors worldwide.
The SEC further alleges that Ripple Labs used market services for non-cash transactions, for which they paid in XRP (the native cryptocurrency of the Ripple network) in order to boost token sales.
The outcome of the SEC vs. Ripple lawsuit will set a precedent for the crypto industry. If the SEC wins the lawsuit, XRPwould be classified as a security rather than a currency in the United States. This might create a legal precedent for other cryptos to be categorized as securities as well.
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XRP is one of the few big cryptocurrencies that failed to reach an all-time high during the bull market of 2020–2021. The lawsuit caused the price of XRP to plummet, making cryptocurrency holders the main victims of the SEC vs. Ripple saga.
Future Outlook of XRP
The outcome of the aforementioned lawsuit will undoubtedly have a significant impact on the price of XRP. A lot of investors believe that XRP can touch the $1 mark in the near future. Given that it crossed the $1 mark last year (52-week high) and has recorded an all-time high of $3.84, it is very likely that XRP will cross the $1 mark in the coming months or years.
How Much Money You Would Make, if XRP Reaches $1?
Let’s assume that you invested $100 in XRP today. XRP is currently trading at $0.3816. At this rate, you will have 262.05 XRP tokens. When it reaches $1 in value, your $100 investment will be worth $262, an approximately 262% return on investment (ROI).
Likewise, if you buy $1000 worth of XRP tokens today at this price, you will have 2620.5 XRP tokens. If you liquidate these at $1 each, you can make $2620.5.
If you are thinking, “This is not a very astronomical ROI,” please bear in mind that XRP is way less risky than many other meme coins or unknown crypto coins.
Also Read: Here’s How Much Your $100 Investment in Terra Classic Will Be Worth If LUNC Reaches $1
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- About author
- Disclaimer
Dhirendra is a writer, producer, and journalist who has worked in the media industry for more than 3 years. A technology enthusiast, a curious person who loves to research and know about things. When he is not working, you can find him reading and understanding the world through the lens of the Internet.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
As an expert deeply entrenched in the cryptocurrency space, I have closely followed the ongoing legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC). This high-stakes lawsuit, initiated in 2020, revolves around the SEC's allegations that Ripple, along with its executives, raised over $1.3 billion through what the regulatory body deems illegal means.
Ripple Labs, during the period between 2013 and 2020, purportedly sold XRP tokens to secure capital. The SEC contends that this fundraising was conducted unlawfully as XRP was not registered as a security. The global offering of XRP to investors further complicates the legal landscape. The SEC additionally accuses Ripple Labs of utilizing market services for non-cash transactions, remunerating in XRP, the native cryptocurrency of the Ripple network, to artificially bolster token sales.
The outcome of this lawsuit holds immense significance for the entire cryptocurrency industry. If the SEC prevails, XRP could be classified as a security rather than a currency in the United States, setting a potentially far-reaching legal precedent for other cryptocurrencies.
The article touches upon the impact of the lawsuit on XRP's market performance, particularly noting its failure to reach an all-time high during the 2020–2021 bull market. The legal imbroglio has adversely affected the price of XRP, causing losses for cryptocurrency holders caught in the SEC vs. Ripple saga.
Looking ahead, the author speculates on the future outlook of XRP, linking it directly to the lawsuit's resolution. Many investors are optimistic that a favorable outcome for Ripple could propel XRP to the $1 mark in the near future. The article supports this prediction by referencing XRP's past performance, highlighting its 52-week high of $1 and an all-time high of $3.84.
To illustrate the potential financial gains, the article provides a simple investment scenario. It calculates the return on investment (ROI) for those who invest in XRP at its current trading price and anticipate a future value of $1. The calculations emphasize that, despite the seemingly modest ROI, XRP is positioned as a less risky investment compared to other meme coins or lesser-known cryptocurrencies.
In conclusion, the article not only provides a comprehensive summary of the Ripple vs. SEC lawsuit but also offers insights into the potential financial implications for investors in XRP. The author, Dhirendra, positions himself as a technology enthusiast and a seasoned journalist, lending credibility to the information presented.
