One of the largest cryptocurrencies by market cap may be recovering after a pause. XRP, the world’s seventh-largest cryptocurrency, is hoping an out-of-court legal settlement will reverse its recent poor performance. Opinions among crypto investors are divided on where the digital currency will go next.
Since December 2020, XRP has been in a protracted legal battle with the US Securities & Exchange Commission (SEC). The SEC has said that Ripple’s currency is an unregistered security, which the company — the ledger that uses XRP — denies.
According to reports, Ripple may be close to an out-of-court settlement with the SEC. Legal action by the SEC has led to the sudden deaths of many cryptocurrency issuers such as Kik, a messaging app. A settlement would be good news for the thousands of XRP holders around the world, analysts said, and is seen as the more likely outcome.
Ripple’s XRP could transform the money transfer business. The SEC has said that Ripple’s currency is an unregistered security, which the company — the ledger that uses XRP — denies.
Dmitry Demidko/ @wildbook/Unsplash
“From now through November…the cards are on the table,” Paul Hogan, a crypto legal expert, told The Daily Hodl, a trade publication. Hogan also said that a settlement between XRP and the SEC could be “imminent.”
“Something Cooking Behind the Doors”
Analytics Insight, a cryptocurrency analytics company, predicts that the coin could reach as high as $1.04 by 2025.
“XRP price prediction is solid,” the company’s analysts wrote in a recent report. Still, analysts sounded cautious about charging the digital asset.
“The fact is that the crypto community is not too positive about this crypto, so it is still recommended to invest in a crypto that is more accepted by the users,” they wrote.
Other reports suggest that some XRP whales may be preparing to sell after 500 million XRP, accounting for 1 percent of the nearly 50 billion digital coins issued, were recently transferred between cryptocurrency wallet addresses by major holders.
Still, Ripple has partnered with local money transfer agents in Latin America to facilitate faster and cheaper international currency transfers. The company announced in April that it had partnered with Travelex Bank, a regional Latin American financial services company, to offer currency exchange services between Mexico and Brazil.
Money transfer may get a new facelift. Analytics Insight, a cryptocurrency analytics company, predicts that the coin could reach as high as $1.04 by 2025.
André Francois McKenzie
Latin American money transfer insiders agree that the deal with Travelex and other similar money transfer companies is significant.
“I like XRP,” a Mexico City-based money transmitter using the feri handle wrote on Bitzur Telegram, a popular cryptocurrency insider forum.
“[XRP is a] bridge currency. Accounts that are not pre-funded require it [for] cross-border payments in many settlement processes[es]. Ripple’s turnover [are] higher and higher every quarter, even with the SEC release.”
The Mexican money transfer expert and cryptocurrency investor added that “more than 400 banks and some central banks” have signed up to the digital currency platform for an expected large-scale launch. “Something’s cooking behind the doors,” he wrote.
The Ripple blockchain that runs XRP was founded by a reclusive blockchain pioneer named Jed McCaleb. McCaleb also founded Stellar, a copycat blockchain, in a technical process known as “blockchain forking” in 2014.
Before writing the code for Ripple and Stellar blockchains, McCaleb founded Mt. Gox, a bitcoin exchange that he briefly sold to Tokyo-based French entrepreneur Mark Karpelles in 2012.
Mt. Gox went bankrupt two years later after 800,000 BTC worth $460 million went missing. Ultimately, the exchange’s creditors were compensated after the bitcoin community donated a matching number of BTC to victims of the exchange hack.
To fuel one of the biggest scandals in Bitcoin history, 80,000 BTC were reportedly missing even before Karpelles took over the exchange. Karpelles was eventually given a suspended sentence by the Japanese courts for his role in the stock market’s downfall. He said in May that investors could end up getting back as much as $6 billion due to new plans to create an NFT-based digital currency rating agency for the sector. Investors in Mt. Gox would get lifetime access to the service in the form of tokens, he said.
(Additional reporting by Joseph Hammond)
This story was provided to Newsweek by Zenger News.