The value of the combined cryptocurrency market has surged to more than one trillion as prices rise across the board. The surge over one trillion comes as smaller cryptocurrencies, including ethereum, Ripple‘s XRP, cardano and stellar, all make significant gains.
About Ripple (XRP)
Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., an US based technology company. Released in 2012, Ripple is built upon a distributed open source protocol, and supports tokens representing fiat currency, commodities, cryptocurrency, and other units of value such as frequent flier miles or mobile minutes.
The price tag of Ripple’s XRP has been on a roller coaster over the last month after a late November surge was wiped out by a lawsuit brought by the U.S. Security and Exchange Commission against Ripple, casting doubt over XRP’s future.
Ripple In the News
The current Ripple news aggregators are overflowing with stories as of late. Ripple is actually entwined with government and central banks central banks, global economics, stock markets, international trade and commodity prices , government spending, and inflation.
Ripple’s objectives and its very own financial reality have compelled it to actively seek to offer and sell XRP as widely as possible, while controlling supply and demand in the resale market to manage and control liquidity for an imagined, future “use” case.
Several exchanges delisted or halted trading of XRP after the lawsuit was revealed.
On Jan. seven, 2020, Stuart Alderoty, general counsel at Ripple Inc., pointed out that legal processes take time. Garlinghouse commented: “Things may seem quiet, but there’s plenty happening behind the scenes. We’ll be filing our initial response within weeks.”
Nonetheless, some cryptocurrencies don’t have strong fundamentals and therefore need further support to survive. Even some national currencies including those from emerging economies like the Mexico and Peru, which are actually experiencing weak demand from wealthy investors. The governments in these countries are actually attempting to support the currencies by creating exchanges or perhaps futures markets to provide liquidity and allow for secure trading.
Given Ripple’s prominent business relationships and XRP’s market capitalization, the SEC’s case could have far-reaching implications. A flurry of moves by players in the crypto ecosystem since last week is indicative of the case’s seriousness. Buyer – and investor – beware.