XRP slides to $0 50 as ETHgate controversy resurfaces, Ripple CTO debates impact on litigation

The XRP Ledger was launched in June 2012 with the goal of creating a digital asset that was more sustainable and built specifically for payments. Ripple uses gateways, which are best described as something similar to a global ledger made up What is Ripple of private blockchains. A gateway is essentially a digital portal that governments, companies, and financial institutions use to join the network. This mechanism is called the Ripple Transaction Protocol (RTXP), also known as RippleNet.

• This legal debate prompts crucial reflections on the role of regulatory bodies in promoting fair market practices.
• Once another government, company, or financial institution joins RippleNet, it can transact with other gateways at a much faster speed and a fraction of the cost.
• By using XRP for cross-border payments, institutions can bridge currencies and ensure payments are sent and received in local currency on either side of a transaction in as little as 3 seconds.
• As per the XRP price forecast, things are not looking good either, because as it stands now, XRP is trading below both the 50-day EMA and 200-day EMA lines.
• The momentum oscillator ranges from 0 to 100, and is used to identify overbought and oversold conditions of an asset.

Daily Digest Market Movers: SEC to file its response to Ripple’s opposition brief on April 29

While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts. Ripple doesn’t use Proof-of-Work or Proof-of-Stake network consensus protocols.

How You Can Use Ripple and XRP

• So, whether you choose to invest in Ripple (XRP) or not, it’s worth watching as blockchain adoption increases.
• Ripple is a centralized financial technology (fintech) company building different products to solve global payment issues through its remittance system, payment settlement, and exchange.
• Former SEC director William Hinman is a subject of interest in this investigation, which pertains directly to the SEC and Ripple dispute.
• The solution was launched in July 2019, and currently has more than 4,000 companies registered, including 23 banks and 4,300 suppliers.
• This also means that money can reach markets that normally might take longer or cost a lot more to reach.

This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Furthermore, Ripple has addressed the absence of evidence supporting future violations or reckless behavior in its institutional XRP sales. Hence, the SEC’s response and Ripple’s further counter would serve as focal points in determining whether the Ripple vs SEC case will reach a settlement soon. Bitcoin and Ethereum Spot ETFs issued in Hong Kong registered a combined trading volume of around $12 million at market close on Tuesday.

• It is built on blockchain technology designed to be decentralised, scalable, and secure.
• Unlike Bitcoin, Ripple does not pay any rewards for adding new blocks to the blockchain.
• Sound arguments against Ripple’s opposition brief could raise expectations of a punitive disgorgement and injunction.
• As a result, the network can validate transactions more securely and efficiently than other cryptocurrencies.
• When someone wants to send money over the network, they can use XRP to facilitate the transaction.

The SEC’s Lawsuit Against Ripple

The future of XRP meanwhile is less certain, but if Ripple does become the platform banks do business online it’s currency will be tied to that success. Securities and Exchange Commission’s decision to drop its suit against Ripple in October 2023. The investment watchdog organization had charged the Ripple Chief Executive Brad Garlinghouse and co-founder Chris Larsen in 2020 with an unregistered sales of securities, in the form of $1.3 billion in XRP.

Alex leans on his formal educational background (BSBA with a Major in Finance from the University of Florida) and his on-the-ground experiences with cryptocurrency starting in 2012. Alex works with cryptocurrency and blockchain-based companies on content strategy and business development. He privately consults entrepreneurs and venture capitalists on movements within the cryptocurrency industry. As far as any practical applications for use by the average person of an XRP token, there aren’t many. However, when you view Ripple (XRP) through the lens of the global payments industry, it’s a traditional high-tech David vs. the established Goliath.

Chaos Over Expert Testimony

This list is called a Unique Node List, or UNL, that is specific to each node. Both projects specialize in cross-border payments and have a similar architecture. However, the Stellar Foundation is a non-profit https://www.tokenexus.com/how-to-make-money-with-ethereum-the-guide-2020/ while Ripple is a for-profit company. While Ripple is focused on helping giant banking institutions, Stellar is aligning themselves with the little guy in an attempt to bring banking the unbanked.

UNL is a critical component of the Ripple network’s security model, and it helps to ensure that the XRP Ledger remains as tamper-proof and resistant to attacks as possible. Anyone can operate a validator; currently, over 150 validators are active on the ledger, which is operated by universities, exchanges, businesses, and individuals. In many ways, this isn’t wholly surprising, as blockchain technology holds a vast number of benefits for companies that can employ it effectively. It is something that needs to be understood by potential buyers and sellers because it gives those financial institutions a much higher level of control over Ripple than most other cryptocurrencies out there. Validators update their ledgers every three to five seconds as new transactions come in to ensure that they match the other ledgers.

Office of Inspector General Investigation into the SEC

Crypto sector performance over the past two weeks shows meme coins emerged as clear outperformers, beating Bitcoin, AI coins and Binance coin categories. Bitcoin price losses nearly 4% of its value on Tuesday, exchanging hands at $61,657 on Binance at the time of writing. An ongoing investigation into possible financial conflicts of interest within the SEC relates directly to the SEC vs. Ripple case. The court ruling could influence market sentiment toward the SEC vs. Ripple case. If the court grants the Motion to Strike, the SEC cannot provide new testimony regarding Ripple’s post-complaint activity and financial statement analysis to pursue a punitive penalty. In its opening brief, the SEC argued Ripple continued to breach US securities laws after the SEC filed charges in December 2020 (post-complaint).