Ripple Settlement May Trigger XRP Price to Skyrocket
Natalia Zakharova, Head of Business Development at FXOpen, said that Ripple is expected to either win or settle the case in their favor.
FXOpen is one of the largest Forex brokers in the world handling around $4.2 billion Dollars in daily volume.
Ripple won a key victory in court last week when the judge denied the SEC’s motion to strike Ripple’s Fair Notice defense. This means that the judge thinks that the law may not be clearly laid out and therefore Ripple did not have “fair notice” that they were breaking the law.
It is now widely expected that Ripple will either win at trial or have a settlement in their favor. Ripple’s lawyers have previously stated they want to take the case to trial.
According to Ms. Zakharova:
“Whilst it is not yet conclusive, there is definitely a sway of opinion toward the litigation against Ripple to be settled in its favor, and many leading academics from major universities have already publicly stated opinions that the lawsuit is baseless and that Ripple will either win, or it will be settled in Ripple’s favor outside of the courtroom.”
Relating to the price of XRP, Ms. Zakharova said:
“There is most definitely a possibility of its value accelerating dramatically.”
While she didn’t give any specific price targets, Blockchain Daily’s in-house analyst Intuit Trading thinks that XRP can go higher than $100 in the coming years.
He believes XRP is currently very undervalued because of negative perception from the court case which will be cleared up when XRP does not have to register as a security.
XRP is supported by many banks and could become a reserve asset which can be used as a liquidity bridge between exotic foreign currency pairs.
According to a Ripple document:
“Settlement Through Digital Assets… allows for the transacting banks to settle payments using XRP as a digital asset. XRP’s reach into exotic corridors and average daily trading volume higher than most exotic currencies, makes it an ideal bridge asset for settling transactions between banks.
In this arrangement, each bank holds XRP as a fungible liquidity pool that can be used for payments within a number of exotic corridors without the need to hold nostro accounts in those currencies.
With XRP eliminating the need for banks to have nostro accounts or foreign currency exposure, this arrangement is ideal to be used for exotic corridors.”
XRP had some of the most successful marketing in 2017, which ended when the SEC began suing crypto companies in 2018. A win in court would allow them to begin this marketing campaign again in a similar way as they did in 2017.
A win would also get a lot more institutions and banks interested in XRP and crypto in general, as many are awaiting the outcome of this trial or for congress to pass clear regulations before getting involved.
It would also allow major US exchanges such as Coinbase to relist their XRP trading pairs which will bring a lot more volume.