Alex Dovbnya
Despite regulatory clarity, XRP is significantly underperforming Bitcoin
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The cryptocurrency XRP, affiliated with Ripple, is currently on track to record its ninth consecutive month in the red against Bitcoin, the flagship cryptocurrency.
XRP is now down 72% against the crypto king since Ripple managed to score a partial legal victory against the United States Securities and Exchange Commission last July.
The token reached its current all-time high of 0.00025 BTC in May 2017. Currently, it is down 97% from that high.
As U.Today reported, U.S. District Court Judge Analisa Torres partially sided with the San Francisco-based company, ruling that secondary sales of the highly controversial token do not constitute a securities offering. The decision triggered a substantial rise in XRP prices, but it was ultimately short-lived.
In October, Stuart Alderoty, Ripple’s lead lawyer praised The unique status of XRP in the United States since it is the only cryptocurrency that benefits from clear regulation in the United States (with the exception of Bitcoin).
Ripple is also not safe at the moment. Last year, Judge Torres also ruled that Ripple violated the securities offering with its institutional sales of XRP. As reported by U.Today, the SEC demands that Ripple pay a hefty fine of $2 billion. However, Ripple wants to reduce this gargantuan sum to a mere 10 million dollarsarguing that it had not shown reckless disregard for securities laws since the company was actively engaging with U.S. regulators.
It remains to be seen how future developments in the Ripple case will affect the price of XRP. However, so far, the token’s new regulatory clarity has not translated into significant price gains.
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Alex Dovbnya
