Via X, Sean McBride, a former director at Ripple, offered an analysis of the perplexing downtrend of the XRP price despite a series of ostensibly positive developments surrounding Ripple and the XRP Ledger (XRPL). McBrideโs insights come at a time when XRPโs underperformance in a bullish market continues to baffle investors and industry observers alike.
Why Is XRP Price Down Despite A Slew Of Positive News?
Despite recent bullish periods in the broader crypto market, XRP has notably failed to capitalize on these gains. In a conversation with X users, McBride attributed this lackluster performance to the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), highlighting the critical impact of impending judicial decisions on XRPโs valuation.
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On July 13, 2023, Judge Torresโs ruling that XRP is not a security led to a temporary surge by 100% to $0.93, demonstrating the marketโs sensitivity to legal developments. However, eleven months later, XRPโs price has halved, reflecting ongoing concerns about the possible long-term implications of the SECโs actions and the potential for an appeal, which McBride acknowledges could happen unless the ruling is unfavorable to Ripple.
โNothing significant is going to happen with the price of XRP until Judge Torres makes her decision. So anyone expecting anything different is delusional,โ McBride explained, adding โonce Torres makes her decision, I think we find out a bit more about whatโs actually behind the curtain. This could open up the door for US institutions working with Ripple to โflip the switchโ. We will just have to wait and see if thatโs the case.โ
Despite the overshadowing legal drama, Ripple has not been short on positive news. Recently, Ripple announced the creation of the XRPL Japan and Korea Fund on June 11, 2024, a significant initiative with an allocation of 1 billion XRP aimed at catalyzing the growth and development of the XRPL ecosystem in East Asia.
Additionally, Rippleโs strategic acquisitions have been notable. The company has successfully finalized its acquisition of Standard Custody & Trust Company. In May 2023, Ripple further expanded its services by acquiring blockchain firm Metaco for $250 million, and in April, it announced plans to launch a stablecoin aimed at bolstering the XRP Ledger ecosystem.
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Commenting on these strategic shifts by Ripple, McBride noted, โRipple is perfect, they donโt make any mistakes. Their executives fart rainbows. Everything they have done turns to gold. Wake the f*ck up people. If you think thatโs how Ripple operates, youโre sorely mistaken. They are vocally self-critical, employees have backbone; disagree and commit. Ripple has changed their strategy many times.โ
Notably, Ripple has been proactive in securing over 40 Money Transmitter Licenses (MTLs), necessary for its payment operations across the United States. โThe next big piece of this is clear legislation in the US. Hopefully that is on the way with the recent developments in Congress and Trumpโs commitment to Crypto (assuming he becomes President),โ McBride remarked.
In response to a userโs inquiry about the likelihood of an SEC appeal if Ripple receives a favorable ruling, McBride commented, โShouldnโt stop whatโs happening in the US from happening, IMO, unless of course the ruling is not in Rippleโs favor.โ
Addressing another userโs observation about a perceived shift in his tone regarding Ripple and XRP, McBride reassured, โNo, not at all. Iโm still very positive on Ripple and XRP. [โฆ] Iโm a big fan, but that doesnโt mean Iโm blind to the realities of whatโs happening.โ
At press time, XRP traded at $0.4818.
Featured image created with DALLยทE, chart from TradingView.com
