Ripple (XRP) Price Shoots Up 20% Unfazed by Binance-CFTC Lawsuit  

April 1, 2023 Abhijit Bhandary Cryptocurrency News 0

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The cryptocurrency market has been on a roller coaster ride this week, with some major events shaking the industry.

One was the lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance, the world’s largest crypto exchange, and its CEO Changpeng Zhao (CZ).

One cryptocurrency that stood out from the crowd and defied the bearish sentiment was Ripple’s XRP. The native token of the Ripple network surged by more than 20% in the past seven days, reaching a high of $0.60 on March 31.

XRP is currently the fourth-largest cryptocurrency by market capitalization, with a value of over $27 billion.

The CFTC accused Binance and CZ of violating various regulations, such as failing to implement adequate anti-money laundering and customer protection measures, offering illegal derivatives trading to US residents, and manipulating the market.

The lawsuit seeks to impose civil penalties, disgorgement of ill-gotten gains, and permanent injunctions against Binance and CZ.

The news of the lawsuit sent shockwaves across the crypto space, causing a sharp drop in the prices of most cryptocurrencies, including Bitcoin (BTC), which fell by about $1400 in a matter of minutes. However, the market quickly recovered and stabilized, with BTC trading above $28,000 at the time of writing.

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What’s behind XRP’s impressive performance?

Several possible factors could explain it. One of them is the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), which has been dragging on since December 2020.

The SEC alleges that Ripple and its executives sold unregistered securities in the form of XRP tokens, while Ripple argues that XRP is not a security but a currency.

The case has seen some positive developments for Ripple recently, such as winning access to internal SEC documents that could prove that XRP was treated as a currency by the regulator in the past.

Moreover, some prominent figures in the crypto industry have expressed their support for Ripple and XRP, such as Mike Novogratz, CEO of Galaxy Digital, who said he is rooting for Ripple to win the case.

Another factor that could boost XRP’s price is the growing adoption of its technology by various institutions and organizations worldwide.

For example, Ripple announced on March 29 that it has partnered with Tranglo, one of Asia’s leading cross-border payment hubs, to expand its On-Demand Liquidity (ODL) service in Southeast Asia. ODL uses XRP as a bridge currency to enable fast and cheap cross-border transactions.

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Additionally, Ripple revealed on March 30 that it had joined forces with Novatti Group, an Australian digital banking and payments company, to deliver instant cross-border payments between Australia and Southeast Asia using ODL. These partnerships demonstrate that Ripple’s technology is gaining traction and recognition in the global payments industry.

XRP’s rally also coincides with a general increase in demand and interest for cryptocurrencies, especially among institutional investors and corporations.

For instance, MicroStrategy, a business intelligence firm with over 90,000 BTC on its balance sheet, announced on March 31 that it has repaid a $205 million loan to Silvergate Bank using its excess cash flows and bought another 6,500 BTC with its proceeds.

Furthermore, PayPal, one of the world’s largest online payment platforms, confirmed on March 30 that it would allow its US customers to use their crypto holdings to pay at millions of merchants worldwide. This move could expose millions of people to cryptocurrencies and increase their adoption and acceptance.

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In conclusion, XRP has shown remarkable resilience and strength in the face of adversity this week, outperforming most of its peers and reaching new highs for 2023.

While there are still many challenges and uncertainties ahead for Ripple and XRP, such as the outcome of the SEC lawsuit and the regulatory environment for cryptocurrencies in general, there are also many opportunities and catalysts that could propel XRP to new heights in the future.

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