Jun 13, 2024 12:05
Via X, Sean McBride, a former director at Ripple, offered an analysis of the perplexing downtrend of the XRP price despite a series of ostensibly positive developments surrounding Ripple and the XRP Ledger (XRPL). McBride’s insights come at a time when XRP’s underperformance in a bullish market continues to baffle investors and industry observers alike. Why Is XRP Price Down Despite A Slew Of Positive News? Despite recent bullish periods in the broader crypto market, XRP has notably failed to capitalize on these gains. In a conversation with X users, McBride attributed this lackluster performance to the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), highlighting the critical impact of impending judicial decisions on XRPs valuation. Related Reading: Crypto Analyst Predicts XRP Price Will Rally 50,000% To $250, Heres When On July 13, 2023, Judge Torress ruling that XRP is not a security led to a temporary surge by 100% to $0.93, demonstrating the markets sensitivity to legal developments. However, eleven months later, XRPs price has halved, reflecting ongoing concerns about the possible long-term implications of the SECs actions and the potential for an appeal, which McBride acknowledges could happen unless the ruling is unfavorable to Ripple. “Nothing significant is going to happen with the price of XRP until Judge Torres makes her decision. So anyone expecting anything different is delusional,” McBride explained, adding once Torres makes her decision, I think we find out a bit more about whats actually behind the curtain. This could open up the door for US institutions working with Ripple to flip the switch. We will just have to wait and see if thats the case. Despite the overshadowing legal drama, Ripple has not been short on positive news. Recently, Ripple announced the creation of the XRPL Japan and Korea Fund on June 11, 2024, a significant initiative with an allocation of 1 billion XRP aimed at catalyzing the growth and development of the XRPL ecosystem in East Asia. Additionally, Ripple’s strategic acquisitions have been notable. The company has successfully finalized its acquisition of Standard Custody & Trust Company. In May 2023, Ripple further expanded its services by acquiring blockchain firm Metaco for $250 million, and in April, it announced plans to launch a stablecoin aimed at bolstering the XRP Ledger ecosystem. Related Reading: Crypto Analyst Predicts XRP At $0.75 In July Despite Year-Long Slump Commenting on these strategic shifts by Ripple, McBride noted, “Ripple is perfect, they dont make any mistakes. Their executives fart rainbows. Everything they have done turns to gold. Wake the f*ck up people. If you think thats how Ripple operates, youre sorely mistaken. They are vocally self-critical, employees have backbone; disagree and commit. Ripple has changed their strategy many times.” Notably, Ripple has been proactive in securing over 40 Money Transmitter Licenses (MTLs), necessary for its payment operations across the United States. “The next big piece of this is clear legislation in the US. Hopefully that is on the way with the recent developments in Congress and Trumps commitment to Crypto (assuming he becomes President),” McBride remarked. In response to a user’s inquiry about the likelihood of an SEC appeal if Ripple receives a favorable ruling, McBride commented, “Shouldnt stop whats happening in the US from happening, IMO, unless of course the ruling is not in Ripples favor.” Addressing another user’s observation about a perceived shift in his tone regarding Ripple and XRP, McBride reassured, “No, not at all. Im still very positive on Ripple and XRP. […] I’m a big fan, but that doesnt mean Im blind to the realities of whats happening.” At press time, XRP traded at $0.4818. Featured image created with DALL·E, chart from TradingView.com
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