The end of 2020 and the beginning of 2021 is a difficult period for cryptocurrency XRP. This is due to the court case of the US Securities and Exchange Commission (SEC) against Ripple, the driving force behind XRP.
Up and down
The XRP exchange rate was 0.64 USD in mid-December, but plummeted to 0.20 USD in just a few weeks.
But in the first week of January 2021, the fifth largest digital cryptocurrency rose 37% back to $ 0.31, the current price. According to data from our Ripple price page, the price has risen 31% in the last 24 hours.
Still, it all feels a little weird. The price increase does not seem logical.
After all, since the SEC accused Ripple of selling unlicensed securities (XRP) in December 2020, dozens of major exchanges such as Coinbase and Binance US have cancelled XRP. Yesterday, Blockchain.com also stopped trading XRP and it became known that the large Ripple investor Tetragon Financial Group filed an indictment against the company.
Mati Greenspan, the founder of Quantum Economics: „XRP’s performance seems to be comparable to the rest of the market.
United States only
Although the list of exchanges that suspend trading or delete XRP has grown, the asset still has some support. For example, with the exception of the US, the whole world can still trade XRP. The SEC’s court case does not affect, for example, the Netherlands or Asia.
In addition, Americans have also started a citizens‘ initiative. More than 35,000 signatures have been collected for a petition on WhiteHouse.gov asking the American federal government to consider XRP as a currency. They are not there yet, the threshold is 100,000 signatures to get an official answer.
Finally, the big men of Ripple Chris Larsen and Brad Garlinghouse, both mentioned in the SEC court case, recently put forward the idea of relocating the company’s headquarters abroad for legal reasons.