The Path Ahead for Ripple – The Best & the Worst Case Scenario After XRP SEC Lawsuit
Both Tether and Litecoin are now ahead of XRP in terms of market cap. It all started with the news about the SEC’s lawsuit against Ripple. The news gave rise to fear-mongering, and soon fake news started spreading regarding the SEC’s lawsuit against XRP. The Hashant team came out with an article to set things straight and presented the ground reality about the current circumstances that Ripple is facing.
So, now the question is what’s the path ahead for XRP? What are the best and worst-case scenarios for XRP? We have come up with this article to bring you the best and worst-case scenarios for XRP, with this article.
#1. SEC Wins the Case Against Ripple
The most pressing issue that Ripple is facing now is the SEC’s lawsuit against Ripple and its management. Let’s start with the worst-case scenario that every XRP enthusiast dreads – What if the SEC wins against Ripple? Well, this will turn out to be very bad news for XRP enthusiasts.
First thing first, it will likely take years for the courts to deliver their judgment on the case. But in case, court rules in favor of SEC against Ripple that XRP is a security, the cryptocurrency will hit hard. It’s because there won’t be an adequate market for XRP tokens afterward. The majority of the crypto exchanges and trading platforms in the United States, including the Non-US based exchanges that allow American citizens, do not have the necessary licenses to allow the trading of securities on their platforms.
If the court passes a judgment that XRP is security, then most of the cryptocurrency exchanges will have to delist XRP. It will lead to the drying up of liquidity for XRP. The exchanges don’t have an option as if they continue to allow XRP trading on their platform, the SEC will ask them to register as a securities exchange. If they don’t register as a securities exchange, they will have to face the wrath of the SEC and will be facing penalties for selling unregistered securities.
Even in this case, it’s not all lost for Ripple and XRP fans. XRP still rules the roost in most of the countries, other than the United States, with Japan leading the front. A few reports even call Japan’s favoritism for XRP an obsession. It’s because XRP is a cryptocurrency in Japan and not a security. The Japanese cryptocurrency exchanges refuse to see XRP as security, and thus, they will continue to allow the trading of XRP. Ripple will likely find similar support in many other crypto-friendly countries. Hence, even if XRP’s prices plummet hard after losing to the SEC. It will rise like a Phoenix from the ashes in some other country like Japan, Singapore, and the United Arab Emirates.
#2. SEC Loses the Case Against Ripple
If the court rules against the SEC, it will help Ripple prove once and for all that XRP is not a security. It will remove the legal uncertainties concerning XRP being a cryptocurrency or a security. The court’s ruling in favor of Ripple will also be a win for the crypto industry as a whole. It will compel the US government and authorities to bring a clear set of rules regarding cryptocurrencies.
Once Ripple secures a win against the SEC, every cryptocurrency exchange will resume the trading of XRP on their platforms. As soon as the XRP trading resume, all hell will break loose, as the prices will go up quickly. The XRP prices will touch an all-time high within no time. XRP will again claim back its throne of being the third-largest cryptocurrency in terms of market cap.
Many XRP fans believe in Ripple and its mission. They are holding onto their XRP tokens in the face of extreme legal challenges ahead for Ripple. The SEC’s lawsuit against Ripple was not able to shake their strong belief in the potential of XRP. They will be rewarded once the court rules in the favor of Ripple. It’s because the prices of XRP tokens will rise and reach an all-time high.
The current situation will remain gloomy for XRP and its fans. It’s because Ripple is facing unprecedented challenges that the SEC lawsuit has brought in front of it. In both the best and the worst-case scenarios, we expect that Ripple will continue to be active in the crypto space. But in the case of a win, they will resume operating from the United States, and they will continue to sell their XRP tokens as cryptocurrency in the country. They will also take back their position of being the third-largest cryptocurrency in the world.
In the case they lose against the SEC, they will move out from the United States after paying heavy penalties in the country. Japan is the most likely country where Ripple will operate from. But the XRP tokens won’t be available for trading in the United States. They will also be out of the global list of top ten cryptocurrencies by market cap. Yet, they will continue to grow and sell their XRP tokens in crypto-friendly countries where XRP will continue to be deemed as a cryptocurrency. Until the court’s judgment on Ripple vs SEC comes out, every crypto enthusiast will have to hold their breath.
The judgment on Ripple vs SEC will go down as one of the most important judgments in the entire history of cryptocurrencies. The Hashant team is keeping tabs on the progress and will keep our readers updated.