XRP Coin Price Prediction 20225 min read

If you are a crypto fanatic, you would’ve heard by now about the lawsuit that was filed by the SEC against Ripple Labs and its founders in December of 2020. This lawsuit has caused major damages to XRP coin holders and affected the cryptocurrency’s future within the crypto market.

The XRP coin was launched in the year of 2012 by Ripple Labs Inc. Founders of Ripple have a goal to incentivize global exchanges and secure transactions of all sorts of currencies, from fiat to crypto. It has partnerships with over 300 financial companies, including the Bank of America and Santander.

The Technology behind XRP Coin

As you may already know, the XRP coin is the native cryptocurrency of the Ripple protocol. The XRP ledger is an open-source and a permissionless blockchain which was developed with the aim of it serving its users as a digital exchange and payment network. Ripple’s main goal is to deliver borderless transactions through its remittent system, without the hassle caused by financial intermediaries. In fact, it is considered to be a cross-border digital hawala network.

The XRP ledger behaves similarly to the SWIFT system through its ability of carrying out secure international transactions or payments. However, unlike a SWIFT system, Ripple can process up to 1500 transactions and can achieve finality within 3 to 5 seconds.

JP Morgan explained it better when he said, “While traditional money transfers – most commonly SWIFT transfers – are costly and can take up 5 business days to complete, transactions using Ripple’s XRP can be completed in as little as 3 to 5 seconds and transaction fees are just 0.0001 XRP. SWIFT transfers are more expensive due to the numerous intermediary banks involved that charge fees to both the sender and recipient.”

What Makes XRP Coin Unique?

The XRP Coin was developed with the intention of allowing its users to use it as a digital currency. Unlike many cryptocurrencies, XRP can be used with any bank rather than just be used with a specific network. That is due to the fact that it is backed world’s biggest banks and financial intermediaries, because it provides the right infrastructure for banks to carry out transactions.

Ripple’s senior director of global operations, Emi Yoshikawa, explained the XRP coin as, “A bridge asset in international settlement that is not competing with stablecoins but on the contrary, it is its complementary.”

Furthermore, Ripple acts as a digital exchange office which allows its users to convert between all sorts of cryptocurrencies, including fiat and fiat-pegged currencies.

SEC Vs. Ripple Labs Inc.

The XRP Coin was once the third operated cryptocurrency behind Bitcoin and Ethereum, according to its market cap. However, due to the lawsuit filed by the US Securities and Exchange Commission’s office (SEC), the cryptocurrency lost more than 30% percent of its value. In addition to that, after the case was filed, many exchange services suspended trading using the XRP coin. That in return caused it to lose more than half of its market cap.

The SEC claims that ex-CEO of Ripple Labs, Chris Larsen, and current CEO Brad Garlinghouse have illegally raised capital in 2013 to finance their company by selling XRP in an unregistered securities offering, which means they have conducted an illegal IPO. The SEC also claims that the XRP’s only service within the crypto world is to generate income for those who have invested in it. Therefore, Ripple Labs, Chris Larsen and Brad Garlinghouse are being sued for failing to register the XRP under the US securities federal law.

On the contrary to what the SEC has claimed, Founders of Ripple Labs allege that the XRP coin acts as a digital currency. Considering the fact that in the year of 2015 Ripple Labs came into a settlement with the Department of Justice that claims the XRP coin “is a convertible digital currency” and was registered under the US currency law rather than the federal securities law.

The recent progressions within the lawsuit are acting in favor towards Ripple Labs Inc.  The judge appointed to the case has recently allowed six XRP crptocurrency holders to provide perspective on whether the token is a form of unregistered security, or a currency. You can find a more detailed discussion about the case here.

XRP Coin Price Analysis

The XRP coin has been trying to survive the crash it endured in December of 2020. Four days before the SEC announced its lawsuit against Ripple, the XPR coin was traded at price of $0.58 USD with a market cap of under 27 billion. After the lawsuit announcement, the XRP coin reached a dipping price of $0.17.

As the case has been developing, the XRP coin has been also regaining its value. On April 14th of 2021, it was valued at $1.96 USD. Which means that the coin had a positive percentage increase of 1052.94% since the lawsuit has been announced. In today’s crypto marketplace, the XRP coin is worth $0.78 USD.

XRP Coin Prediction 2022

“If the company is able to win the SEC lawsuit and trading resumes on major cryptocurrency exchanges like Coinbase, XRP is poised for significant adoption”. – JP Morgan.

The XRP coin is predicted to open the year of 2022 with a price of $0.70 USD, and end it with a price of $0.51 USD. It’s been also forecasted that the cryptocurrency will record a percentage loss of 27.14% within the year of 2022.

However, the future price of the XRP coin depends greatly on whether they win or lose their case against the SEC. Though it’s yet to be clear when the final court hearing will occur. Therefore, the XRP coin forecasts may vary by the time the court submits it ruling.

 In Conclusion

The price of the XRP coin may skyrocket if they won the case, however be aware of the consequences the cryptocurrency will endure if the contrary happened. Therefore, always conduct proper research using credible sources before investing in your assets.