Ripple (XRP), a cryptocurrency token designed for instant and inexpensive cross-border transactions, has seen its value increase by 40% over the last seven days amidst its ongoing legal case with the U.S. Securities and Exchange Commission (SEC). Let’s take a look at this token which was founded in September 2012 by the company Ripple, and what’s the case all about.
Ripple is a for-profit company that promotes and develops XRP, and the software (XRP ledger) that powers it. The company maintains them as two distinct entities. Currently, all XRP-related products run on their RippleNet, which connect financial institutions globally with a single API for faster and cheaper transactions. Ripple, which also holds a significant amount of XRP tokens, also plays a key role in the development of the XRP Ledger and helps maintain it.
At launch, 100 billion XRP crypto tokens were pre-mined, and the XRP Ledger software keeps that limit in place with no more tokens created. Ripple distributed 55 billion XRP to forum users and escrowed the majority of the remaining tokens to fund its technology and development. During the 2017 bull market, the value of XRP reached a high of $3.55. Their ongoing lawsuit amidst a wider crypto bear market has since seen their value drop to below a dollar in 2022.
The court case against the SEC over the last two years, involved both parties filing a number of discovery motions without really addressing the actual issue, which is whether Ripple violated securities law by selling XRP. The motions for summary judgment as of 20th September 2022 mean that the parties are asking the court to decide whether either the SEC or Ripple has provided enough evidence to prove whether there was a violation.
More information: https://ripple.com/xrp/
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