Yerevan (CoinChpater.com) – XRP, the native token of Ripple Labs, gained 6 percent since May 25, when CNBC released its annual ‘Disruptor 50’ list. Ripple ranked N38 in the list of private companies, aligned with a ‘rapid pace of technological change.’
The San Francisco blockchain startup offers global payments technologies and uses its XRP token for executing transfers and payments on various platforms. The chief executive of the company Brad Garlinghouse commented on Ripple’s objectives during an interview with CNBC’s Squawk Box.
[Ripple] can make cross-border payments in real-time, very efficient, very low cost, and that’s good for the global economy. We can unlock trillions of dollars of trapped capital to make the economy more efficient.asserted the CEO.
He also showed his appreciation on social media, tweeting the following:
The news came as an encouragement to the XRP community. The token underwent a choppy recovery and traded at $0.99 in the early European session Thursday, up about 14 percent from its May 25 low.
What propelled Ripple in the first place?
Ripple made the Disruptor 50 list for the second consecutive year. The company has many prominent institutional partners worldwide. Santander (USA), American Express, Canadian Imperial Bank of Commerce, and InstaReM (Singapore) are collaborators using Ripple’s blockchain technology.
The XRP token also ranked high within the ‘green’ crypto list. Tesla’s decision to step away from Bitcoin payments because of environmental concerns fired up a debate, bringing ecological repercussions of mining into focus. XRP bodes well regarding carbon footprint, as Ripple Labs aims to go zero-emission by the year 2030.
However, the blockchain startup faced difficulties, as some of its former partners chose to end the collaboration. MoneyGram ended the partnership agreement in March 2021 in the flurry of a lawsuit filed against Ripple Labs by the Securities and Exchange Commission (SEC). The US regulator accused the blockchain company in December 2020 of selling illegal securities in the form of XRP tokens.
What holds the company back?
The SEC charged Mr. Garlingfouse and the former Ripple Labs CEO Chris Larsen of illegally selling $1.3 billion worth of XRP tokens. The SEC deemed the token ‘securities’ rather than a currency, unlike other top-cap cryptocurrencies like Bitcoin and Ethereum.
The lawsuit, however, started to backfire when the presiding judge Sarah Netburn granted Ripple access to SEC’s internal documentation regarding cryptocurrencies. Should the said documents reveal BTC or ETH as ‘currencies,’ the SEC’s prosecution could prove insubstantial. Many Ripple supporters are hopeful the upcoming month will bring the lawsuit to a final close.
XRP, as Ripple’s native token, is dependent on the company’s successes and failures. Ripple supporters saw the inclusion in CNBC’s Disrupters 50 list as a hopeful sign for the company’s future. The traders’ decision to buy the token, instead of panic selling reflected on the daily charts and gave XRP a 6 percent boost.