- Schwartz said about the outcome of the SEC lawsuit that it will not affect the existence of XRP because the market cap is too big.
- According to the Ripple CTO, Stellar has a “very similar” technology, but a different strategy.
Ripple’s Chief Technology Officer (CTO), David Schwartz, spoke with Coindesk TV about recent developments in its legal battle with the SEC, the supposed reasons for the recent XRP price pump, and the differences between his company and Stellar. Regarding Ripple’s recent victory in court, under which the company is obtaining access to external and partially internal SEC documents regarding the classification of Bitcoin and Ethereum as non-securities, Schwartz stated that the SEC lawsuit came out of nowhere:
I think the primary argument that we’re trying to make here is that the market considers them similar, we consider them similar, all the evidence suggests that they are similar. And then the SEC comes out of nowhere, and says ‘No’, they are completely different.
Schwartz also addressed the question of whether the outcome of the court case could affect the existence of XRP. But the Ripple CTO dismissed that suggestion, effectively saying that XRP is too big to fail. The only reason to be “concerned is that it’s always hard to tell,” Schwartz said.
“A good example,” according to Schwartz, is Bitcoin’s drama over block size expansion. “It all worked out okay, but there wasn’t certainly a lack of drama. […] And the reason not to worry, I would say, because the market caps of these systems are in the billions of dollars. People acting in their own self-interest are not going to allow the ecosystem to die if there’s a way to save it,” as Schwartz explained.
“That’s all that’s holding these systems together. The governing bodies don’t have any legal authority to control these systems. It’s just people want them to work,” Schwartz continued.
Schwartz on the XRP pump and Stellar as a competitor
Schwartz, meanwhile, was hesitant to offer firm reasons for XRP’s recent price surge, but suggested that rumors of a relisting of XRP by Coinbase “may have triggered some upward movement.” In addition, he expressed that the SEC litigation hearing and related hopes “might have impacted the price, but these are just guesses.”
Moreover, the hosts also confronted Schwartz about the progress of perceived nemesis, Stellar and its founder Jed McCaleb. As CNF reported, Stellar is currently being used to develop two central bank digital currencies, the Bermuda dollar and e-Hryvnia in Ukraine.
The Ripple CTO began by highlighting the differences between the two projects, explaining that Ripple as a company “made a big bet in 2014/2015 on enterprise payments and XRP as a payment solution”. He continued:
We directly worked very hard on allowing banks and financial institutions to be able to use XRP as a way to settle their payments in just a few seconds, and as an alternative to the corresponding banking system. There’s a lot of work involved in doing that. […] I think we made a lot more progress on that. We have millions of transactions that take place […] on the RippleNet by financial institutions.
At the same time, Schwartz elicited that the technologies are “very similar,” as Stellar “basically started copying the XRP ledger”. Nevertheless, over time, he said, the direction of the projects have changed significantly:
So there are similarities on in terms of the technology, but there are a lot of differences on the way we’re perceived in the market. […] If you look at the projects being build on the XRP Ledger, and look at the projects being build on Stellar, they are different projects, even though the technologies are similar.
Recommended for you:
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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.
Jake Simmons
Jake Simmons was the former founder and managing partner at CNF. He has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he has been involved with the subject every day.Prior to Crypto News Flash, Jake studied computer science and worked for 2 years for a startup in the blockchain sector.Business Email: info@crypto-news-flash.com Phone: +49 160 92211628
FAQs
If Ripple were to win their court case against the SEC, it could potentially lead to a significant increase in the value of XRP (Ripple's cryptocurrency).
What is the price prediction for XRP ripple after lawsuit? ›
An XRP break above the bottom and top trend lines would support a move toward the 50-day EMA. A breakout from the 50-day would give bulls a run at the 200-day EMA and the $0.5739 resistance level. Selling pressure could intensify at the $0.5739 resistance level. The 200-day EMA is confluent with the resistance level.
Is the SEC seeking $2 billion in fines from Ripple Labs? ›
Last month, the SEC said it wanted Ripple Labs to pay close to $2 billion, including $876 million in disgorgement, $198 million in prejudgment interest and a civil penalty of $876 million, in its proposed final judgment. The agency asked Judge Torres to weigh the "severity" of the firm's misconduct.
What will happen to my XRP if they lose lawsuit? ›
However, if Ripple loses all appeals, the SEC is likely to collect the $1.3 billion (the amount that the regulator alleges that Ripple earned from the unregistered securities sale) and offer XRP holders an option to sell their holdings.
How high can XRP realistically go? ›
XRP Price Forecast for October 2024
Having analyzed XRP prices, cryptocurrency experts expect that the XRP rate might reach a maximum of $$0.636 in October 2024. It might, however, drop to $$0.587. For October 2024, the forecasted average of XRP is nearly $$0.612.
Will XRP really take off? ›
However, based on historical performance and market trends, it's possible that XRP could experience growth over the next few years. Keep an eye on the news surrounding Ripple in regard to the SEC case and its ongoing developments.
How high can XRP go in 2024? ›
XRP Price Prediction Highlights
XRP is the native crypto token of the Ripple network. XRP price will find resistance around $0.48 and support around $0.41 in April of 2024. Throughout 2024, XRP is expected to move between $0.45 and $1.41 with an average forecasted price of $0.85.
How long will an XRP lawsuit last? ›
Judge Torres will begin deliberating on a penalty for Ripple breaching Section 5 of the Securities Act in May. At this stage, the chances of a settlement will likely have vanished. The SEC may begin preparing an appeal that could leave XRP sidelined through H2 2024.
Will XRP reach 1 dollar? ›
Will XRP reach $1 any time soon? So XRP should gain plenty of value over time from Ripple's money-transfer operations, and the token also benefits from the market-moving impact of predictable Bitcoin gains. I can't promise that XRP will reach $1 per token in 2024, but the general trend line certainly points upward.
Is Ripple Guilty? ›
The court had found Ripple violated federal securities laws by making institutional sales of XRP but dismissed similar allegations by the SEC that the sale of XRP on exchanges and through algorithms also violated the law.
No, Ripple does not own all of the XRP in circulation. As of October 26, 2023, Ripple owns approximately 6.3% of the total XRP supply (47.7 billion out of 100 billion XRP). Here's a breakdown: 47.7 billion XRP: Held by Ripple Labs for various purposes such as ecosystem development, partnerships, and future sales.
Is there an XRP ETF? ›
The AXRP Exchange Traded Product (ETP) is provided by 21Shares. It is built to track an index: CoinMarketCap Ripple XRP Price Index.
Will XRP win the court case? ›
July 13 (Reuters) - Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges, a U.S. judge ruled on Thursday, a landmark legal victory for the cryptocurrency industry that sent the value of XRP soaring.
Could Ripple reach $10,000? ›
Could Ripple reach $10,000? Here's why it's impossible. The reason why XRP won't ever reach a price of $10,000 is not complicated – the supply of XRP is simply too large. XRP has a maximum supply limit of 100 billion coins.
How much will 1 ethereum be worth in 2030? ›
Ethereum (ETH) Price Prediction 2030
According to your price prediction input for Ethereum, the value of ETH may increase by +5% and reach $ 4,401.11 by 2030.
Can Ripple win against SEC? ›
July 13, 2023: Ripple Labs wins the case
However, the decision was not entirely in the industry's favor because Ripple was found to have broken the securities laws when it offered XRP to hedge funds and other institutional buyers.
Can Ripple win the SEC case? ›
The SEC spokesperson said the regulator was reviewing the decision. Ripple Chief Executive Brad Garlinghouse in an interview called the ruling "a huge win for Ripple but more importantly for the industry overall in the U.S."
Is XRP going to win the lawsuit? ›
The lawsuit between Ripple and the SEC is approaching a crucial trial in April 2023, with potential long-term impacts on the cryptocurrency sector and possibilities of extended legal battles through appeals. Ripple has gained key partial legal victories, but the final outcome and its implications are still uncertain.
