Ripple’s XRP Summary Judgment Positive for Coinbase, Price Target Raised to $120: Needham (2024)
The U.S. district court ruling that Ripple’s XRP token should not be considered a security if sold via an exchange or through programmatic sales is positive for Coinbase (COIN) shares since it sets a precedent that token sales through exchanges, at least in the case of XRP, did not violate securities laws, broker Needham said in a research report Friday.
"This outcome should moderately de-risk the regulatory pressure on the stock,” analysts John Todaro and Daniel Lehmann wrote, which is a significant overhang on the share price.
The broker maintained its buy rating on Coinbase shares and raised its price target to $120 from $70. Coinbase shares were trading 1% lower at $105.96 in premarket trading Friday. The stock closed 25% higher on Thursday following the Ripple court ruling.
Recent bitcoin (BTC) exchange-traded-fund (ETF) applications from major traditional finance institutions that are using Coinbase for various services “gives us further comfort regarding broad support for the ecosystem and Coinbase,” the report said.
Needham said it had modestly raised its second-quarter 2023 earnings estimates for the crypto exchange, but cautioned that a further decline in retail trading would result in poor volumes for the quarter.
Needham’s bullish comments were in stark contrast to those of German investment bank Berenberg, which wrote Thursday that the rally in Coinbase shares following news of the court’s decision was unwarranted.
As a seasoned cryptocurrency analyst with a deep understanding of the regulatory landscape and market dynamics, I bring a wealth of expertise to the discussion surrounding the recent U.S. district court ruling on Ripple's XRP token. My extensive experience in the crypto space allows me to provide a nuanced perspective on the implications of this ruling and its impact on Coinbase shares, as outlined in the article.
The U.S. district court ruling has significant ramifications, particularly for Ripple's XRP token. The court's decision that XRP should not be considered a security when sold via an exchange or through programmatic sales is a crucial development. This ruling establishes a precedent that token sales through exchanges, at least in the case of XRP, do not violate securities laws. Such legal clarity is essential for the cryptocurrency industry and has broader implications for market participants.
The article mentions that the brokerage firm Needham sees this ruling as a positive development for Coinbase (COIN) shares. The analysts, John Todaro and Daniel Lehmann, argue that the ruling moderately de-risks regulatory pressure on Coinbase, a significant factor affecting its share price. This demonstrates an understanding of the interconnectedness of legal decisions and their impact on specific cryptocurrency platforms.
Needham maintains its buy rating on Coinbase shares and raises its price target from $70 to $120. This decision reflects the analysts' confidence in the positive trajectory for Coinbase following the Ripple court ruling. The fact that Coinbase shares surged 25% on Thursday following the court decision further supports the analysts' assessment of the situation.
The article also highlights the relevance of recent bitcoin (BTC) exchange-traded-fund (ETF) applications from major traditional finance institutions that utilize Coinbase for various services. This information is crucial in understanding the broader industry dynamics and Coinbase's positioning within the ecosystem. Needham suggests that these ETF applications provide further comfort regarding broad support for the crypto ecosystem and Coinbase.
However, it's essential to note that Needham acknowledges potential challenges. The analysts caution that a further decline in retail trading could result in poor volumes for Coinbase in the second quarter of 2023. This balanced assessment demonstrates a realistic understanding of the potential risks associated with market conditions.
In contrast, the article mentions the dissenting views of German investment bank Berenberg, which characterized the rally in Coinbase shares following the court's decision as unwarranted. This divergence in opinions emphasizes the complex and dynamic nature of the cryptocurrency market, where different analysts may interpret events differently.
In summary, my in-depth knowledge of cryptocurrency markets and regulations allows me to provide a comprehensive analysis of the U.S. district court ruling's implications, Coinbase's position, and the contrasting views within the industry.
In addition, a positive outcome in the court case could help restore investor confidence in Ripple and XRP. This, in turn, could result in more institutional and mainstream investment in the cryptocurrency, driving its price higher.
The resolution of the ongoing litigation could, paradoxically, lead to a decline in XRP's price. “Once the excitement around the lawsuit fades, we could see a drop in interest for XRP. That could, in the medium term, negatively impact its price,” Drozdz explains.
Therefore, our XRP price prediction forecasts a price of $1.80 by the end of 2024. Depending on the lawsuit's outcome and crypto market conditions, it could go much higher, potentially reaching $3.10.
Delivering a split decision on competing summary judgment motions, the court ruled in favor of the defendants for three of the four transaction types at issue, finding that such transactions did not involve investment contract securities and ruling that the XRP token at issue was not, in and of itself, a security.
The SEC may begin preparing an appeal that could leave XRP sidelined through H2 2024. However, SEC plans to appeal against the Programmatic Sales ruling hinge on the outcome of, Coinbase (COIN) Motion to Dismiss (MTD) all charges in the ongoing SEC v Coinbase case.
The outcome of the U.S. regulator's court case against Ripple might still have far-reaching consequences for the cryptocurrency industry. Ripple emerged somewhat victorious in this court case, and two defendants await trial and final judgments on aiding and abetting the offerings.
Throughout 2024, XRP is expected to move between $0.45 and $1.41 with an average forecasted price of $0.85. The forecaster at InvestingHaven predicts XRP to move in a range between $0.40 and $0.88 throughout 2024 but increases upside targets for 2025 and 2026 to $3 and ultimately $10.
The crypto market is buzzing as analysts predict Ripple (XRP) will reach $5.00 in 2025. This bold prediction has shaken the crypto market. Yet, some analysts believe Borroe Finance ($ROE) has more potential to breach the $5.00 level sooner.
That would mean XRP's market capitalisation needs to exceed the GDP of China. So, in short, it's impossible that we will see a $500 XRP anytime soon. But that doesn't mean XRP can't post impressive gains in the coming years.
July 13 (Reuters) - Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges, a U.S. judge ruled on Thursday, a landmark legal victory for the cryptocurrency industry that sent the value of XRP soaring.
With most XRP future Ripple price predictions however, It's generally expected that Ripple should be worth more in 2024 than it is now, with some pundits suggesting that it could be worth as high as a maximum price of $4.
Ripple created XRP to operate the network as an alternative to SWIFT, offering transaction speed for more efficient international payments and faster cross-border transactions. Ripple's token is handy for little-traded currencies that may require an intermediary medium of exchange to be swapped cheaply.
July 13 (Reuters) - Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges, a U.S. judge ruled on Thursday, a landmark legal victory for the cryptocurrency industry that sent the value of XRP soaring.
However, the firm has put any plans for an IPO on hold for now, Garlinghouse said. Garlinghouse told CNBC in 2022 that Ripple, the company behind the cryptocurrency XRP , will explore a public listing after its lawsuit with the U.S. Securities and Exchange Commission ends.
Introduction: My name is The Hon. Margery Christiansen, I am a bright, adorable, precious, inexpensive, gorgeous, comfortable, happy person who loves writing and wants to share my knowledge and understanding with you.
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