The curious case of XRP Vs. SEC

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Hi Lions!

Recently XRP has been the talk of the town because of winning a years-long ongoing case against SEC and I hope many of you have read about it and also experienced the huge growth in the price of XRP with a current price of 0.79$. So today, let’s take a deep dive into the fascinating world of XRP and learn the basics about it and also try to know what’s going on with it in recent times.

What is XRP?

XRP is a digital cryptocurrency that has taken the modern financial world by storm since its existence. Unlike many other crypto projects out there, XRP is more than just a digital coin and actually offers real value to its users. It created a revolutionary way of transferring money and making fast and secure digital monetary transactions possible while leveraging blockchain technology. Let us uncover its origin, founders, advantages and some real-life uses first and then touch on the recent topic below!

Origin & Founders

XRP was launched back in 2012 by a company called Ripple Labs. The brilliant minds behind this incredible digital currency were Chris Larsen and Jed McCaleb. They were visionary people with a particular goal to make a world where sending and receiving money across the globe would be as easy as sending a text message or email to your friend next door. Chris Larsen and Jed McCaleb believed in the power of technology and put their trust in it to make the world a better place where cross-border transactions will be hassle-free, fast, secure and easy. Chris was a tech entrepreneur while the other one, Jed McCaleb was a skilled programmer in his field and together, they formed a perfect team to create XRP and Ripple Labs.

Advantages

Now, the question may arise about XRP as to what makes this currency so special. So, let's now talk about some fantastic advantages this currency offers.

Speedy Transactions

Unlike traditional bank or other financial institution transaction systems that generally take days to execute the whole process of transferring money cross-border, XRP executes the whole process with the speed of lightning! It can completely execute the whole process of a transaction in just a few seconds irrespective of the fact how far away the two parties are.

Low Costs

Sending money internationally through banks can sometimes be expensive due to the various fees and charges they apply. But on the other hand, XRP offers low transaction fees, which certainly makes it a cost-effective option for users.

Security

XRP uses a modern and to innovative technology called blockchain to keep the transactions safe and secure. For those who are unaware of this technology, just think of it as a digital lock that protects your money from any bad actors and cannot be attacked or getting harm by unauthorized entities.

No Middlemen

When you use XRP, you don't need to go through any middlemen like banks or other companies or organizations which always tales a fat cut for the service they offer and also takes more time with the process. This enhances the process into a faster and more direct transfer while cutting out all the unnecessary complications.

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Real-life Usage

Unlike many cryptocurrencies, it has practical uses in the modern financial world and actually adds value to society and makes our lives better. Let’s look at the real-life usage of this token in today’s modern world.

Global Money Transfers

First of all, XRP contributed a lot to the cross-border money transfer system. It's a common scenario where a person study or work in another country and his or her family lives in a different country. When that person wants to send or reive money for any cause, the need for international payment transactions arises which is a costly and time-consuming process. XRP allows its users to do those transfers quickly and with much lower fees than existing traditional methods and thus, making it an excellent option for international money transfers.

Helping Charities

XRP is also being used to support various charitable organizations, especially when it comes to an international level. It allows people to donate to certain causes they care about like natural calamities, people affects by wars or internal crises. We have already seen such cases during the Russia-Ukraine war or floods in Kerala, India etc.

E-commerce

With the rise of e-commerce in today’s modern world, the usage of national and international payments has also grown significantly. Most of us are already doing online shopping and you may be surprised to know that some e-commerce websites also accept cryptos including XRP as a payment option to make it more accessible by users. It was a dream for many to buy their favorite stuff online with crypto and with XRP, it is even easier!

Recent case win of XRP against SEC

As many of you have already read about it, XRP recently won a significant legal battle that was running for the last 3 years against the Securities and Exchange Commission (SEC). But, as it goes with any great tale, the victory of XRP comes with an interesting story with its own twists and turns. For three long years, Ripple Labs, the founder and moderator of XRP token and the SEC were fighting a court battle over the fact on whether XRP should be considered a security or not in the eyes of US regulators. The recent ruling brought a significant turn in this legal saga that made it to the front page of the news. The US federal judge named Analisa Torres recently declared that when Ripple sold XRP to institutional investors years ago, it was considered a security. However, the judge clarified that it wasn't the case when sold to the general public.

Different Perspectives

The judge's reasoning was that institutional investors were likely aware of XRP's security-related characteristics when pitched by Ripple back then. However, regular folks like us who bought or use to buy XRP directly from crypto exchanges might not have been as informed about this aspect. This ruling gives both Ripple and the SEC reasons to claim victory, as it even fuels up the ongoing debate between the two parties on whether certain cryptocurrency should be treated as securities or not.

The Changing Crypto Landscape

The decision was based on the understanding of retail investors like us about cryptocurrency up until 2020. Back then, Bitcoin was valued much lower than where it is now and of course, regulators were just starting to form opinions about the crypto space. Well, a lot of things have changed since then which is making the implications even less straightforward in the current crypto market.

As we have seen in recent times, The SEC has been filing charges against various crypto companies lately. What it wants I personally think is to try addressing the issue by making sure what counts as a security and what is not to the general public. However, the court disagreed with several arguments made by the SEC, citing the "Howey test" used by the Supreme Court. It also pointed out that Ripple never promised anything to secondary-market buyers or retail investors, which is a common story with exchange-traded instruments.

Some people are also appreciating the fact that this early ruling might help clear the air for crypto exchanges like Binance or Coinbase, accused of listing potential securities. However, this doesn't address the concerns of successful crypto projects that rely on pre-sales to institutional investors and venture capitalists before going public. The ruling might affect such pre-funding efforts which then may potentially lead to new challenges for startups in the crypto space. However, While the crypto market is celebrating this victory at present, there's still uncertainty that may wait for us in the future. The SEC is dealing with multiple crypto-related cases and the Ripple case itself is far from over. With the possibility of an appeal by the SEC, the price of XRP could become volatile, causing concern for investors. Thou, for now, XRP's win is a significant moment in the crypto world. But we should keep in mind that the future is uncertain, and the SEC might choose to appeal the ruling and it may be a alarming fact for those already invested in XRP or thinking about buying some. I would advise you to be sure to do your research and understand the risks involved.

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Ripple Whitepaper - https://whitepaper.io/coin/ripple

Resources I used to gather information

• https://www.bloomberg.com
• https://medium.com
• https://www.publish0x.com
• https://coinmarketcap.com/currencies/xrp

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I hope you liked reading my post about XRP and let me know if you are still holding XRP, already sold it or planning to buy in the comment section below and I will be seeing you all in my next post.

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