In the past few days, XRP had a severe price surge and now sitting at over 1 dollar since March 2018. This price action was a welcome surprise for anyone that is holding XRP on their portfolio. But as investors, you should know that XRP has still underperformed most other altcoins in this potion of the bull cycle.
The reason for that underperformance is the uncertainties around the coin and ripple the company behind it. SEC(US Securities and Exchange Commission) lawsuit claiming that XRP is unregistered security is the main reason for this underperformance. Luckily for XRP holders, a potential breakthrough in the case came out on the 7th of April 2021, indicating that XRP hoped to win the lawsuit soon than expected.
Ripple granted access to SEC documents on Bitcoin and Ethereum.
On the 7th of April 2021, ripple won the right to access the SEC’s internal communications on whether crypto is a security or not. The largest cryptos of all time are bitcoin and Ethereum are already legally accepted as non-security instruments. There is a rumor saying that SEC members have admitted that XRP is not a security but a currency, just like bitcoin. If this is true, this will give ripple lawyers a significant advantage in court to prove that XRP is not a security.
Ripple has found out that SEC has found some similarities between XRP and other cryptocurrencies like Bitcoin and Ethereum. Thus, the lawyers of ripple will be able to argue that XRP is also a non-security instrument.
Most importantly, 95% of ripple customers are outside of the USA. The only thing that matters of SEC lawsuit against XRP are Ripple headquarters is still inside the USA. Ripple’s CEO already stated that they are planning to move out of the USA because of this. Once they move out, this lawsuit won’t matter to them like now. With these things happening now, there is a possibility that this lawsuit against Ripple will end ultimately sooner than we expected.
Investors see XRP as a good investment.
Crypto investors are always in search of the following prominent cryptocurrency that can give them good returns. XRP falls behind many top-tier cryptocurrencies because of these unfortunate things that happened to Ripple. To get a clear idea, let’s see how other significant cryptocurrencies did in this bull run.
- Bitcoin is up nearly 700% in the last year. It broke its previous all-time high of $20000 and risen to a new all-time high at $61000.
- Ethereum is up nearly 1200% in last year. It would’ve 12X your money if you bought the dip.
- Binance Coin(BNB) is also up more than 2600% from last year.
- Cardano, one of the most popular coins in the recent past, is up almost 3300%
XRP, the former number 3 on the market cap, only had a 300% gain from the last year. That’s not bad, but it could’ve done so much more if it doesn’t have the lawsuit against it. Many investors think that XRP will soon catch up with other coins and hit a new all-time high.
In this chart by coinmarketcap.com, you can see that XRP hasn’t exploded yet in this bull cycle. XRP is one of the most explosive coins in the crypto space, and it can even 3X 5X in few days, according to the past price actions of XRP.
What is XRP, and why is it important?
Now we know the thing that is changed the game for XRP. Now you need to know the basics and essential things about XRP to understand before investing your money into it.
The first thing you need to know is Ripple is not XRP. Ripple is San Francisco-based fintech company. It’s the company behind the Global payment platform ripple net and a steward of the XRP ledger blockchain along with its digital asset XRP. In 2012 Open Coin and RipplePay merged to form what is known today as Ripple.
The Ripple net can settle transactions in 3 to 5 seconds from anywhere in the world. It’s so much faster than Bitcoin and Ethereum. It can even handle 1500 transactions per second which almost as same as Visa payment speed. How Ripple net achieve this? Let’s find out how.
Ripple uses the open-source XRP ledger blockchain to track, Process, and cryptographically secure and guarantee all transactions. But XRP doesn’t use proof of work, and there is no concept of mining at all. This means that the XRP ledger blockchain’s power consumption is minimal, keeping transaction fees low. XRP provides on-demand liquidity for financial service providers within the Ripple network. Most importantly, XRP acts as a bridge currency, and it facilitates cross-border payments.
Where can you buy XRP?
You can buy XRP in many major cryptocurrency exchanges, but Coinbase removed XRP from their exchange because of the SEC lawsuit. You can still buy XRP on Binance. Sometimes this can be the best time to fill your bags with some XRP but be careful and invest an amount you can afford to lose.
How do you store XRP?
The recommended way to store your crypto is to use a hardware wallet like Trezor. This Hardware wallets give your crypto the best possible safety from hackers and thieves. We also recommend using software like Exodus that Trezor hardware wallet supports. If you have a long-term portfolio of more than $500, you should highly consider buying a hardware wallet.
Do your own research and be prepared for everything because anything can happen in crypto space and being ready is always the way to go. Comment Below if you already have a bunch of XRP and you believe in XRP.