XRP is owned by Ripple Labs and was the seed vision of Jed McCaleb, who got the idea to develop a payments ecosystem after working at a local trading exchange system. McCaleb’s ideas behind Ripple were a lot different than what was being implied by Bitcoin’s commonly popularized validation protocol that was named mining. Ripple was rather relying on consensus among its network members to validate a transaction.
Fast forward to December 2020, SEC charges Ripple and a few of its executives with investor protection laws. Over the years, Ripple raised numerous funding rounds, with the latest one being C-Series funding in December 2019, where they raised a sum of USD 200 million. From renaming Onecoin to Ripple and changing the logos of XRP, Ripple Labs has tried different methods to improve its market position.
Latest updates on the XRP-SEC legal issue!
On top of the existing lawsuit being pulled by the SEC, XRP has also been accused of misleading advertisements during the initial days of its existence. Since the issue between SEC and XRP has entered the courts, different rulings benefit each party. Courts allowing redaction of the notes of meetings between SEC and third parties during the lawsuit proceedings are intended to maintain the privacy of people involved in the meetings. However, the denial for reconsideration of the DPP ruling has allowed breathing room for XRPL.
Another shocking development in recent days has been around Former SEC Director William Hinman. Hinman has been accused of being a benefactor of Ethereum’s Enterprise Alliance via New York-based legal firm Simpson Thacher. Since Simpson Thacher is a member of Ethereum’s Enterprise Alliance, it creates a credibility issue on the entire legal proceedings being taken against the Ripple group.
At one point during his career as the SEC director, William Hinman was paid USD 1.6 million in pension from Simpson Thacher, which further makes raises a question on the credibility of the legal proceeding initiated by William Hinman specifically against Ripple, which excluded the crypto market leaders, Bitcoin and Ethereum. A few hours ago, a fresh lawsuit was filed against former SEC Governor Jay Clayton and Bill Hinman for interference in all XRPL Network users. It seems like this lawsuit can backfire and even take a sharp u-turn at any point.
XRPL NFT growth!
XRPL has been a capable decentralized ledger, and since the launch of its USD 250 million Creator Fund, NFT developers have been hoarding the XRPL considering the broader use cases of NFTs. NFTs have increased 210 times when compared to its pre covid ecosystem of 2020. With the rumored Micheal Jordan’s NFT being launched on the XRPL ecosystem there has been a lot of buzz and whistles around the growth of XRP. One has to understand the difference between XRP cryptocurrency and XRPL or its distributed ledger technology. Although both are owned by Ripple Labs, the growth on one platform doesn’t directly convert to the other. In simple words, the growth of the NFT ecosystem of the XRPL network wouldn’t be directly beneficial for the XRP token’s rise.
XRP Price Analysis
At present, XRP can be seen struggling near the historical support level of 70 cents while stronger support is placed near 60 cents. The bigger red candles across the crypto space could be another round of profit booking without retesting their previous highs. According to the XRP price prediction, the price trend at present seems to be respecting the two-month price consolidation.
Since February started with a bounce back, XRP displayed a sign of support from lower levels of $0.60, but the breakout on February 07, 2022, shifted sentiment in the buyer’s favor. However, XRP is consistently facing rejection at the 200 DMA curve even before its decline below $1 in January 2022. Given the importance of moving average in dedicating a price trend, XRP would have to surpass the 200 Days Moving Average curve that currently lies at $0.90.
After the recent fall to the lower band ($0.69) of the consolidation level, XRP has displayed a quick turn of events with the progress in the lawsuit. It gives a glimmer of hope for XRP enthusiasts to overcome the negative sentiment surrounding the SEC lawsuit and proceed above the 200 DMA curve and trade above $1 in the next few months. The short buying spree of the last three days is an indication for buyers to improve their participation.