Ripple Looks Attractive Now that Bitcoin and Ethereum Are Rebounding
The XRP (CCC:XRP-USD) crypto, commonly known as Ripple, is looking more attractive as Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) are rebounding. XRP crypto bottomed out at the end of July (July 19) at 52.93 cents per crypto token. But was it was at $1.1284 as of Oct. 14. That is a 113% gain in almost three months.
Part of the reason is that both Bitcoin and Ethereum are rebounding as well. XRP is now the sixth-largest cryptocurrency as of Oct. 14, with a market capitalization of $53 billion, according to Coinmarketcap.
By comparison, Bitcoin has a $1.079 billion market value and Ethereum has a $446 billion market cap.
So these two large cryptos have a huge influence on the direction and amplitude of the trading in XRP crypto.
Where Things Stand With XRP Crypto
The one major thing holding back XRP crypto is the SEC’s fight with Ripple Labs, the promoting company for XRP. Some articles seem to indicate that Ripple is behind in the lawsuit, while others indicate that Ripple is ahead.
The issue, according to FX Street, is the company’s sale of XRP crypto tokens:
“The SEC alleged that Ripple sold $1.38 billion worth of XRP, an unregistered security, and the payments giant is defending by stating that the sales did not constitute securities.”
And here is why they think Ripple will win:
“Since the SEC has repeatedly failed to identify contractual provisions that support the claim that the sales were “investment contracts” under the Howey Test, there is a higher likelihood of Ripple’s win, according to XRP proponents.”
In fact, some of the XRP holders have been allowed by the Manhattan judge in the case to give their opinion. According to Reuters, six owners of XRP crypto can offer their “meaningful perspective” opinions on certain legal questions in the lawsuit. This effectively gives them amicus status in the case. Here is what Reuters said why they wanted to have their say:
“The XRP tokenholders sought to intervene in March, saying they were de facto defendants in the case and wanted to protect their interests.”
As a result, there is now a certain level of hope with these XRP crypto holders.
As a result, XRP is gaining a better reputation as a method of payment for central banks and other governmental authorities. According to FX Street, XRP is now being considered by Qatar and Bhutan’s central banks for a remittance-type application.
Recently Ripple Labs announced a $250 million fund to help fund creators of NFTs (non-fungible tokens) that are based on XRP crypto tokens. This is after the company got involved in a $13 million funding round in Mintable, an NFT marketplace. Here is what the GM of Ripple Labs said on the deal:
“By starting with marketplaces and creators, our fund seeks to take the guesswork out of NFT projects to unlock unexplored tokenization use cases on the XRP Ledger.”
According to the article, the XRP Ledger operates a built-in decentralized exchange (DEX). This allows fast settlement for tokenized assets of all types with built-in royalties.
What to Do With XRP Crypto
Despite its troubles with the SEC, the XRP token has tracked Bitcoin and Ethereum. This could easily continue in the future.
Since BTC and ETH tokens started to rebound, the turnaround in XRP crypto is likely to continue as well. So investors in XRP can figure that it may have reached a trough.
Investors who believe that XRP will be left as one of the winners in the crypto world, especially if Ripple Labs wins its lawsuit, might want to get in now.
On the date of publication, Mark R. Hake held a long position in Ethereum but not any other security mentioned in the article (directly or indirectly). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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