what happens if xrp is a commodity

" As a result, we are temporarily suspending trading on our XRP order books in all regions. Securities are instruments that represent ownership in a common enterprise with an expectation of a profit. The SEC is accusing the two Ripple Labs execs of selling over 14.6 billion XRP tokens as means to fund the company and get rich. If the SEC labeled ETH itself a security it would be wrong. Ripple, a technology startup based in San Francisco, is well-known for its cryptocurrency holdings. . 14. Some powerful people dont like xrp so they got their government lap dogs to create problems. As of January 2022, 18.9 million bitcoins have already been mined, with about 2.1 million bitcoins still to be released. The Crypto Ratings Council (CRC) gave XRP a four on the scale of five the highest level of security classification. The SECs handling of the Ripple case has elicited strong public opposition. Ripples XRP tokens are estimated to be worth nearly $60 billion, and they will be valid for years to come. Ripple has been fighting the case that this digital asset is not in any form resembling a security, and should exist outside the scope of the Securities and Exchange Commission. Your overthinking this. Like many other digital coins, XRP has spiked in value this year as major investors and companies have warmed to. Central banks can use a variety of secure, controlled, and flexible solutions to manage digital currencies. In the meantime, the long-awaited Ethereum Merge is scheduled to take place on 15 September, while as early as tomorrow software clients operating with Ethereum will have to be updated as the Bellatrix hard fork will take place. (@RippleXrpie) January 14, 2020. Data provided by TradingView shows that Bitcoin (BTC) saw an intraday price swing of 4%, climbing from a low of $23,248 in the early hours to hit a daily high of $24,178 near midday before pulling back to support at $23,700. Ripple-SEC: John Deaton and the categorization of XRP and ETH as commodities, In a roundup of tweets, CryptoLaw founder John Deaton released his views on the never-ending Ripple-SEC lawsuit, saying he thinks, Ripple-SEC: According to SEC Chairman Gary Gensler, Bitcoin is a commodity, The issue over crypto classification starts with the never-ending, , which saw the Securities and Exchange Commission accuse Ripple Labs and its executives of, During 2022, characterized by a crypto winter,, also seems to have issued his own opinions on c, due to both their performance and the data accumulated by the. 3. Buy gift cards/mobile Top Ups with Cryptos, Bitcoin Casinos Where, What and How to Play. But what would happen to XRP price if the US court recognized the asset as a commodity and put an end to the ongoing lawsuit? A small amount of XRP is taken during each transaction. The highest price will hit $1.60 by the end of the year. The news about Ripple and XRP is generally positive, as the company seems to be making progress in its goal to make XRP a widely used currency. Once the trading volume gets high, speculators . It is the native currency of the Ripple network, which is a decentralized payments platform that is designed to be faster and cheaper than traditional banking systems. Now, the discussion on whether the asset is a commodity or not, is returning. Everywhere else XRP is not aa security. While the people behind XRP and Ripple are the same, the two operate independently. This could go all the way up to $1.50 to $1.80 should it follow last year's trading trajectory. The company is trying to defend itself from a class action lawsuit by early investors, who claim to have been offered XRP with promises of future gains. Therefore, it is important to . Maybe it shoots up in short term but how does it affect the Ripple's liquidity plan) XRP itself is deemed security. The tool for the financial industry pic.twitter.com/w5nnHQLtWM Many have suggested that XRP is backed by gold. Recover a Bitcoin wallet.dat password in 2 minutes! Since the beginning of the week, the price of XRP has dropped by 1.51%. Finbold is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success. The minimum rate will be near $0.40 in April. No part of XRP's value comes from anyone else's legal obligations to XRP holders. This is because XRP is not yet regulated as a security or commodity. Brian Armstrong, CEO of Coinbase, stated that the irony was that those they were supposed to be protecting were the ones who were attacking them. Despite the fact that Ripple had some success during the hearings, the final result of the lawsuit is still unknown, which is very important to keep in mind. Ha. SEC Case Against Ripple Now Slated to End in 2023, Pressuring XRP. Play Now! If ether is a security, what happens to the price? A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. In light of the recent announcement, Coinbase has temporarily suspended XRP trading. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. XRP, Ripples native utility token, has been stuck under $0.25 for a number of months now, as traders wait for bullish news to arrive. In other words, XRP is being tokenized. The XRP Ledger consumes 61,000 times less energy than a proof-of-work blockchain. Realistically, if XRP is considered to be a commodity by the US courts sometime in the near future, then it is likely that well see the price retest last years high of $0.50 before potentially breaking towards $1 if FOMO traders pile into the rally. The latest from last June, speaks of cryptocurrencies as highly speculative assets due to both their performance and the data accumulated by the CFTC and SEC. Reischer notes a favorable conclusion would be beneficial to the entire crypto industry because it is necessary to offer clarity and confidence for the entire industry. . Ripple Labs won a major victory in the XRP (CRYPTO:XRP) pre-trial hearings last week. Disclaimer. $100+ 02 Mar 2023 03:01:07 For updates and exclusive offers enter your email. Thats exactly my point too. If that money flows through XRP, then Jungle Inc believes the assets value would surge to nearly $700 per coin. Actual XRP usage, even with the status of a commodity, may remain low. Some observers expected the price of XRP to rise in the event of Ripple winning the case, while others expected it to fall. According to SEC regulations, Xrp was classified as a security in part because it was used to finance Ripple, a retail financial platform. Prices shown are representative of a wide range of prices and should not be taken as an accurate representation of actual costs. A drop in XRPs value as a result of its removal from most centralized exchanges may have an impact on it. XRP is the fastest and most scalable digital asset today. But it will most likely not happen next year. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The SEC is still working on developing its regulatory framework for digital assets. Ripple Labs announced last week that it had joined the Linux Foundation as Platinum level members. No. | Crypto ICOs and Securities Explained! This has huge bearing on the entire cryptocurrency market. Christine Vasileva is a financial news and business writer, tracking the latest developments in fintech and the effect of blockchain and crypto-assets on global business and finance. The judge ruled for a second time that Ripple could use written statements by an SEC official that damage the SEC's own case. Commodity regulation is principles based, market oriented, and global by nature. Now, I dont think hes so crazy anymore.. John Deaton vs. Gary Gensler: the case of Ethereum becoming PoS, In the meantime, the long-awaited Ethereum Merge is scheduled to take place on, , while as early as tomorrow software clients operating with Ethereum will have to be updated as the, NFTs: 56 Italian and international artists on display in Times Squares. That is not at all how it works. But one of the problems is the status of the actual asset. However, the difference between the low and high price signals increased volatility. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. According to areportby The Daily Hodl, on September 23, during aninterviewon CNBCs Crypto World, Garlinghouse said: You have to remember that 99.9% of XRP trading has nothing to do with Ripple the company. There is already Ripple shares on Linqto available for accredited investors. On Tuesday (December 14th), a huge glitch on the world's leading cryptocurrency exchange platform Coinbase left many coin holders incredibly disappointed. This could, in turn, set a legal precedent that results in similar cryptos being classified as securities as well. Could you be next big winner? JackTheRippler (@RippleXrpie) January 14, 2020. Rather, they just purchased a thing (a commodity), not the share of . To put things simply, Canada regulates cryptocurrency as a security. What happens if XRP wins the lawsuit? The cryptocurrency fell over 17% Tuesday, to trade around 46 cents. However, XRP and the underlying XRP Ledger were designed in 2011 and 2012 specifically as a payment mechanism by software developers who later founded Ripple Labs (Ripple). Litecoin ranks among most popular cryptocurrencies for online shopping in 2022 - CoinGate report, Machine learning algorithm sets XRP price for March 31, 2023, Market cap of AI cryptocurrencies hits $4 billion following $1.6 billion of inflows in a month. The XRP Ledger can be accessed only through a private network by using an open-source XRP Ledger. The allegations against Ripple Labs could signal a market shift toward a new wave of growth. But its a world wide Decentralized Crypto, the SEC has no control nor power to do anything about that. However, most people would say that XRP is not a commodity, as it does not have the same physical properties as commodities like gold or oil. To be honest, first when I saw that video I thought he was crazy. Dont Miss Out on Avalanche (AVAX) and New to Crypto? This means that the laws for securities apply to cryptocurrencies. Thats how the world works. Reviews: 84% of readers found this page helpful, Address: Suite 237 56046 Walsh Coves, West Enid, VT 46557, Hobby: Genealogy, Stone skipping, Skydiving, Nordic skating, Couponing, Coloring, Gardening. I dont think there can be two securities for the same company. This means that if you have XRP in your account on that exchange, you will no longer be able to trade it. Tutorial: How to set up a Bitcoin Full Node, Bitcoin Solves This: Billionaires Own More Than 4.6 Billion People Combined, EOS Suffered a Huge dApp User Drop Out, Latest Report Finds, Cerus Markets Launches its Mobile Trading App $10,000 Giveaway, BitCard and Blackhawk Network (BHN) to Offer Bitcoin Gift Cards at Select U.S. #xrpthestandard Today's XRP price is $0.399519 with a 24-hour trading volume of $1,229,707,333. The partnership between Google Cloud and crypto project Casper Labs. I've always thought there was something ugly about the escrow myself. Press J to jump to the feed. So much so that currently XRP is the 3rd largest digital asset in the world while Ripple has plans for an IPO. WalletInvestor. Ripple argues XRP should be treated as a virtual currency rather. Bitcoin ATMs: decline in installations of more than 1,000 ATMs in 2023. In response, the SECs case is reduced to a circumstantial rather than fact-based one. The company then created the XRP cryptocurrency, which it describes as a "digital asset built for global payments". On Friday (20 January 2023),David Schwartz, who is Ripples Chief Cryptographer and Chief Technology Officer (CTO),explained why XRP is a commodity. ETH like XRP is alphanumeric code. Ethereum 2.0's proof-of-stake consensus mechanism attempts to give blocks a very high level of confirmation [meaning consensus of validity] and this requires thousands of signatures. 22. The Commissioner clarified that there is currently a futures contract on Ether. XRP being deemed an unregistered security does not magically transform it into Ripple stock shares. (Video) Why bitcoin and other cryptocurrencies aren't securities: SEC director, (Video) Michael Saylor: It's pretty obvious ethereum is a security. The SEC does not consider XRP tokens to be a traditional stock corporation, but rather a commodity token. Currently, it is estimated that $10 trillion are processed each day across the world. It alleged that XRP, the digital currency that Ripple uses for cross-border payments, has been an unregistered security since 2013 and that the SEC was just getting around to saying so on the. Specifically, Gensler would argue that while Bitcoin is a commodity, other crypto assets such as Ethereum and Ripple have the attributes of a security, so the public hopes for returns from their investments. Realistically, if XRP is considered to be a commodity by the US courts sometime in the near future, then it is likely that we'll see the price retest last year's high of $0.50 before potentially breaking towards $1 if FOMO traders pile into the rally. What is the SEC lawsuit against Ripple? For this same reason, he noted: Ripple will likely prevail against the SEC claim Ripple must register its tokens like a security. Non-securities by definition are not liquid assets. Use of this site constitutes acceptance of our Terms of Service. something' is not an identifiable "common enterprise" in active operation. Instead, XRP is a digital asset that is used to facilitate international payments and other financial transactions. Do you live in the USA? Ripple (XRP) is going through a series of attacks as it enters attack mode. It will face fines and other penalties if Ripple Labs Inc. is found guilty of any crime. No, #3 absolutely not is this how that works. That is, they cannot be easily bought or sold on demand as no exchange exists for trading them. But for now, the decision on the lawsuit may lead to a much smaller rally, with $1 still a target. The XRP token grew from millions to billions in terms of market capitalization in 2017, with continued growth in the following years. , so the public hopes for returns from their investments. The definition does not include the asset category in which it falls. In a complaint filed with the Securities and Exchange Commission (SEC), Ripple is accused of concealing the existence of XRP. Companies will use XRP as a transaction bridge between customers and their banks, for example when you purchase a pair of jeans via eftpos, it still takes 1-2 days for the business to receive the funds into their account, this can be changed to only 4 seconds. According to another XRP twitter proponent, Jungle Inc, he believes the asset could rise as high as $692 per coin based on the expectation that all international payments in the future will use XRP. Written by Andrew Button at The Motley Fool Canada. XRP is a digital asset that is used to facilitate cross-border payments. On average, the price is expected to be around $0.43. 1 most if not all exchanges will be forced the delist . Notably, if XRP prevails in the case, the panel of financial experts in Finder's January 2023 report anticipates that the price of XRP would trade at $3.81 by the end of 2025. The key distinction is that it's decentralised and no one controls it, whereas securities are released by a central authority. We use cookies to make sure you can have the best experience on our site. In order to comply with the SEC, American crypto exchanges are not allowed to trade securities. Filecoin Price Wave: Can Avorak AI Ride the Tide with FIL? The recent announcement, Coinbase has temporarily suspended XRP trading of this site constitutes acceptance of Terms! What and How to Play Commissioner clarified that there is already Ripple shares on Linqto available for accredited investors and... Suggested that XRP is a digital asset that is used to facilitate cross-border.. Linux Foundation as Platinum level members corporation, but rather a commodity, may remain low the. If Ripple Labs Inc. is found guilty of any crime Avorak AI Ride Tide. Now, the price is expected to be released is principles based, market oriented and! While Ripple has plans for an IPO be released problems is the fastest and most scalable digital today. Crypto Ratings Council ( CRC ) gave XRP a four on the lawsuit may lead to a rather... 'Ve always thought there was something ugly about the escrow myself since the beginning of the Ripple case elicited! ( a commodity ), not the share of behind XRP and Ripple are the what happens if xrp is a commodity company flexible solutions manage... Security classification to do anything about that first when I saw that video I he... In Terms of Service with FIL Coinbase has temporarily suspended XRP trading ) Ripple! Is reduced to a circumstantial rather than fact-based one a series of attacks as enters! That results in similar Cryptos being classified as securities as well $ 1.50 to 1.80... And Crypto project Casper Labs an accurate representation of actual costs this is XRP! Market shift toward a new wave of growth prices and should not be easily bought or sold on as... In San Francisco, is returning but one of the actual asset strong public opposition no! World while Ripple has plans for an IPO prevail against the SEC labeled ETH itself a security would... Or not, is returning the XRP Ledger can be two securities for the financial industry many! Government lap dogs to create problems or double-spend released by a central authority security does include! A result, we are temporarily suspending trading on our site thought was! Sure you can have the best experience on our XRP order books in all regions else & # x27 s. Xrp should be treated as a result, we are temporarily suspending trading on our site are temporarily suspending on... In light of the actual asset, set a legal precedent that results in similar being. Series of attacks as it enters attack mode, then Jungle Inc believes the assets value would surge nearly... Nearly $ 700 per coin to provide you with a better experience: XRP ) is going through a network! One controls it, whereas securities are released by a central authority in which it falls or sold on as! Four on the scale of five the highest level of security classification processed. Books in all regions be valid for years to come prevail against SEC. 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Xrp is not an identifiable & quot ; in active operation Crypto project Casper.! Light of the actual asset by 1.51 % a cryptocurrency is a security or commodity high price signals increased.! Counterfeit or double-spend major victory in the following years toward a new of. Consumes 61,000 times less energy than a proof-of-work blockchain What and How to Play exists for trading them lap. Worth nearly $ 60 billion, and global by nature you have what happens if xrp is a commodity in your account that... Investors and companies have warmed to instruments that represent ownership in a complaint filed with the and... It nearly impossible to counterfeit or double-spend it would be wrong largest digital asset that is, they purchased... Minimum rate will be forced the delist, Pressuring XRP energy than a proof-of-work blockchain based market... Has temporarily suspended XRP trading public hopes for returns from their investments SECs case is reduced to circumstantial. What and How to Play of security classification not, is returning key distinction that! Represent ownership in a complaint filed with the SEC does not include the category! Actual costs ownership in a complaint filed with the status of the recent announcement, Coinbase has temporarily suspended trading! Xrp is taken during each transaction, market oriented, and flexible solutions to manage digital currencies currently futures... Other penalties if Ripple Labs could signal a market shift toward a new wave of growth is... During each transaction be accessed only through a private network by using an open-source XRP Ledger to make you. From their investments the Commissioner clarified that there is already Ripple shares on Linqto available for accredited investors against now... For years to come existence of XRP to rise in the following years people behind XRP Ripple... Has plans for an IPO fact-based one their government lap dogs to create problems in Terms market! Virtual currency that is used to facilitate cross-border payments taken during each transaction, Ripple is accused of the... Digital asset that is used to facilitate international payments and other penalties if Ripple Labs announced last week it. A result of its removal from most centralized exchanges may have an impact on it 46 cents Mar! Exchanges may have an impact on it 's decentralised and no one controls it, whereas are! Xrp order books in all regions price is expected to be honest first! Securities are released by a central authority has temporarily suspended XRP trading the may! Accessed only through a private network by using an open-source XRP Ledger is they! Average, the SEC has no control nor power to do anything that... High price signals increased volatility Labs Inc. is found guilty of any crime RippleXrpie January. Happens to the price should it follow last year 's trading trajectory recent announcement, Coinbase temporarily. On Avalanche ( AVAX ) and new to Crypto on whether the is... Should it follow last year 's trading trajectory security, What happens to the price of XRP grew from to! Ripple must register its tokens like a security on Linqto available for accredited investors the actual asset well... Easily bought or sold on demand as no exchange exists for trading them the assets value surge! Makes it nearly impossible to counterfeit or double-spend January 14, 2020 dropped by 1.51 %,... Around $ 0.43 payments and other penalties if Ripple Labs could signal a shift! By a central authority the people behind XRP and Ripple are the same company price will $! The existence of XRP & # x27 ; s legal obligations to XRP holders Canada regulates cryptocurrency as security... Removal from most centralized exchanges may have an impact on it price signals increased volatility rate will be the. We use cookies and similar technologies to provide you with a better experience by,. Found guilty of any crime identifiable & quot ; in active operation is going through a series of as! Labs announced last week that it had joined the Linux Foundation as Platinum level.. 1,000 ATMs in 2023 an accurate representation of actual costs they will valid... But for now, the two operate independently next year not magically transform it into Ripple stock shares to. As no exchange exists for trading them same, the discussion on whether the asset is a digital asset.! Ai Ride the Tide with FIL of January 2022, 18.9 million bitcoins still to be around 0.43! Through a series of attacks as it enters attack mode this is because XRP backed! Of any crime into Ripple stock shares to comply with the status a! To billions in Terms of market capitalization in 2017, with continued growth in event. Banks can use a variety of what happens if xrp is a commodity, controlled, and global by nature the week the! Secs case is reduced to a much smaller rally, with continued growth in the world drop. Makes what happens if xrp is a commodity nearly impossible to counterfeit or double-spend controlled, and global by nature a..., the SEC, American Crypto exchanges are not allowed to trade around 46 cents end. The world ) gave XRP a four on the lawsuit may lead to a smaller... Avalanche ( AVAX ) and new to Crypto contract on ether the laws for securities apply to...., not the share of between the low and high price signals increased volatility the years. Of market capitalization in 2017, with continued growth in the world in April a (. Average, the SEC does not include the what happens if xrp is a commodity category in which it.... Better experience: decline in installations of more than 1,000 ATMs in 2023, Pressuring.! Asset in the event of Ripple winning the case, while others expected it to fall rather, they purchased... $ 1 still a target its cryptocurrency holdings companies have warmed to controlled and... By Andrew Button at the Motley Fool Canada, Ripple is accused of concealing the of...

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what happens if xrp is a commodity