Yerevan (CoinChapter.com) — XRP, the native token of Ripple blockchain, has soared rapidly during the past week as traders’ attention shift towards its parent company Ripple Labs’ recent courtroom victories against the US Securities and Exchange Commission (SEC).
Traders have increased their exposure in the XRP market, sending its dollar-quoted prices higher by 78 percent. The XRP/USD exchange rate has surged from $0.9 past Wednesday to as high as $1.6 as on Tuesday.
The gains come after XRP suffered a major sell-off between November 24, 2020, and December 29, 2020, led by the SEC’s lawsuit against Ripple Labs. The US securities regulator alleged the San Francisco startup of selling millions of dollars of XRP tokens illegally.
SEC also charged Ripple Labs’ co-founder Chris Larsen and chief executive, Brad Garlinghouse. The agency believes that Messr. Larsen and Garlinghouse filed false financial statements, leading to a potential fraud as per Federal Rule of Civil Procedure.
But as of late, Ripple Labs is hinting that it could come clear of most, if not, all the charges.
Ripple Labs Wins Major Case
The prospect of Ripple Labs winning its ongoing lawsuit increases as the firm walks through another court case unharmed.
Defense lawyer and former federal prosecutor James K. Filan updated earlier Monday that Ripple Labs has won an individual motion that similarly tagged XRP as a security token. In retrospect, Tetragon Financial Group, which previously bought $200 million worth of XRP tokens, sued Ripple Labs, seeking a refund worth $175 million.
The closed-ended investment company lost.
Mr. Filan highlighted the case, hinting that it could serve as a basis to Ripple Labs’ potential victory in the SEC’s lawsuit.
The Ripple Labs’ win against Tetragon Financial Group comes on the heel of an ongoing XRP price boom. Additionally, a flurry of other courtroom victories has boosted bullish sentiment in the Ripple token market.
XRP surged by more than 850 percent, hitting $1.67 for the first time since January 2018. On Tuesday, the token extended its upside sentiment further, iterating that its recent legal wins — albeit small — are prompting traders to increase their bids in the Ripple market.
For instance, on Friday, Ripple Labs gained an edge over the SEC when District Court Judge Sarah Netburn granted the former permission to access the latter’s minutes. It might contain the agency’s interpretations of XRP and its top rivals Bitcoin and Ethereum. The SEC built the whole case on the premise of XRP being security. So if the minutes reveal that SEC does, in fact, refer to XRP as currency rather than security, the case expects to crumble.
Opinion: Will XRP Continue to Rise?
XRP’s demand continues to go higher against its recent legal wins. As long as the court proceedings remain positive for Ripple Labs, investors’ likelihood of holding onto their investments will be higher. They could have more faith in the company — and XRP, by extension as well. This trust expects to attract more investors and raise the price even further.
Photo by Benjamin Voros on Unsplash
