XRP Soars as SEC Drops Charges against Ripple’s Leaders
The US Securities and Exchange Commission dropped the charges it had leveled against Garlinghouse and Larsen since December 2020.
The SEC said that it is willing to reach a settlement with Ripple Labs over its institutional sale of XRP.
The price of XRP token rose by 6.5% within 24 hours after the SEC dropped its charges against the Ripple utives.
Keywords: XRP crypto, XRP coin, XRP surges, SEC accuses, SEC lawsuit, Ripple coin, buy Ripple, buy XRP
Introduction
The Ripple crypto has been performing fairly well since the time it secured a partial win against the US Securities and Exchange Commission (SEC) in July. In that case, a Federal Judge ruled that the sale of XRP on crypto exchanges does not constitute an investment contract.
Read also: Ripple (XRP) Poised for a 20% Price Surge
Soon after that ruling the XRP coin price surged to $0.85 (recent news: Ripple (XRP) Price Struggles to Surpass $0.50). The values of most cryptocurrencies often rise when there is positive news about them or related crypto projects. In this post, we cover how the market has reacted to the news that the SEC has dropped its charges against two Ripple leaders.
XRP Crypto Surges by 6.5% after the SEC Drops Charges against Ripple Labs Leaders
The XRP crypto made a 6.5% price gain on Thursday, 19 October, following the news that the SEC had dropped its charges against the Ripple Labs leaders, Brad Garlinghouse, the Chief utive and Chris Larsen, the co-founder.
Incidentally, the XRP coin’s 6.5% rise was the best daily increase since 13 July, 2023. That pushed the value of XRP to $0.53 before it fell to $0.51 a day later. At the time of writing, 28 October, investors can buy Ripple at $0.554 as the following diagram indicates.
XRP Coin Price- CoinGecko
According to The Graph, the XRP price surged on 20 October after the SEC dropped its lawsuit against the Ripple Lab leaders. From that time to date, the value of the XRP coin has been higher than before.
In a recent court filing, the SEC agreed to dismiss its allegations against the two Ripple utives. According to some analysts the SEC’s withdrawal of charges against the Ripple utives is another victory for Ripple Labs. It registered its first victory against the SEC in July when a Federal judge ruled that Ripple Labs did not violate the securities law when it sold XRP coins on cryptocurrency exchanges.
Some XRP coin whales took advantage of its price spike to book early profits. For example, on Friday crypto whales who held between 1 million and 100 million Ripple coins withdrew XRP worth over $35 million. They did so just after the XRP price crossed the $0.52 price level as the next graph shows.
Ripple (XRP) Whales Wallet Balances - XRP
As you note on the diagram, the whales sold 60 million XRP coins, worth over $32 million, after it recorded its 3-week peak of $0.52. Nonetheless, the current fear in the market is that if the XRP whales continue to sell off the coins, its price may fall below $0.55.
SEC vs. Ripple case: SEC Accuses Ripple of Selling an Unregistered Security
The SEC filed a lawsuit in December 2020 against Ripple Labs and its two utives, Garlinghouse and Larsen, accusing them of selling $1.3 billion XRP coins during the past 7 years.
Read also: Future Trends From The Historical Market of Ripple (XRP)
Therefore, the SEC accuses Ripple Labs of violating Sections 5(a) and 5(c) of the Securities Act of 1933. Specifically, the SEC lawsuit cited Ripple Labs and its two utives Garlinghouse and Larsen as defendants.
As a note, the filing stated, “Over a years-long unregistered offering of securities Ripple was able to raise at least $1.38 billion by selling XRP without providing the type of financial and managerial information typically provided in registration statements and subsequent periodic and current filings.”
However, as said earlier, in July a Federal Judge gave Ripple a partial win when she declared that the XRP coins traded on exchanges do not constitute investment contracts. That ruling also means that investors in the United States can legally buy XRP on crypto exchanges like Gate.io.
After dropping the charges against Garlinghouse and Larsen, the SEC has proposed to make a settlement with Ripple Labs regarding its sale of XRP to institutional investors.
Spot Buyers Fuelled Thursday’s Ripple Coin Rally
The XRP spot market buyers were responsible for Thursday’s price rally. Coinalyze, a data analytic platform, showed high cumulative volume delta (CVD) in spot exchanges, an indication of XRP net inflow into the exchanges.
The fact that there was a high cumulative volume delta (CVD) means that many spot traders were active during that period. However, that Ripple coin price rise did not take it out of the consolidation zone.
How to buy XRP on Gate.io?
Many traders and other investors buy and sell XRP on Gate.io, an exchange which many people prefer to use due to its high security. In order to buy Ripple you need to have a verified user account.
There are various ways of paying for cryptocurrencies at Gate.io which include debit/credit cards, bank transfers and P2P trading. You visit the Buy Crypto Section and select the appropriate payment method, as shown below.
Once you click on your preferred payment method you follow the leads you get there. Alternatively, you can purchase any other major cryptocurrencies like Bitcoin (BTC), Ether (ETH) or USDT and convert it to XRP.
Conclusion
The XRP price surged by 6.5% within 24 hours following the SEC’s withdrawal of charges against Ripple Labs’ senior utives, Garlinghouse and Larsen. The SEC accuses Ripple of selling XRP, which the regulatory authority deems to be a crypto security. After dropping its charges against the utives the SEC hopes to reach a settlement with Ripple Labs over its institutional sale of XRP
FAQS about Ripple
How much is XRP right now?
Currently, the value of XRP is $0.557 after registering a 1.8% within the last 24 hours. However, many analysts believe that XRP is highly undervalued as its price was affected by the ongoing legal battle against the United States SEC. Also, it attained an all-time-high of $3.40 on 7 January 2018.
How much will XRP cost in 2030?
The current price prediction indicates that the value of XRP will fluctuate between $10.29 and $12.80 in 2030. It is currently trading at around $0.55 and analysts expect its price to reach $0.79 by the end of 2023. If Ripple labs wins its case against the SEC the price of XRP will likely rise significantly. Read also: Ripple Scores Big Win against SEC: 2024 Looks Bullish for XRP
Could XRP reach $300?
There is no doubt that the value of XRP will reach $300. What is not definite, however, is when it may attain that price. If Ripple wins its case against the United States SEC it may reach that value between 2030 and 2040.
