XRP has been on an incredible run-up this past few days, doing more than a hundred percent in the last seven days, hitting its highest price since January 2018. It never ceases to amaze anyone the rate at which XRP pumped when it decided to go up.
This recent pump was the most surprising because many people were bearish on XRP because of its listings, the ongoing court case, and so on. The pump has proven that XRP fans are completely unbothered with all the ongoing legal dramas unfolding. Many of them took the opportunity to buy the dip while watching the case closely for a positive turn of events.
The ongoing XRP court case is what set all the craziness in motion. The court case against Ripple Labs is simply alleging that Ripple has been selling unlicensed security since 2014. Ripple Labs is the majority stakeholder of the XRP crypto asset and has been accused of selling XRP to pad out its profit margins.
If XRP is deemed to be a security, Ripple would have to pay a large fine which could hinder XRP's mission to become a global cryptocurrency, but Ripple labs argue that XRP is a currency like Bitcoin and Ethereum and not a security,
There have been some twists in the court case; firstly, the judge ruled that the SEC would have to hand over the documents concerning determining that Bitcoin and Ethereum are not securities. The judge also denied the SEC access to the banking records of Ripple’s top executives. Those are the two things that have happened in favor of Ripple labs in the court case, and with the way things are playing out, they have a good chance of winning the case.
Whatever happens, it might eventually end up in a settlement; Ripple labs will not admit any wrongdoing, they would be asked to pay a huge fine, and XRP will not be deemed a security. This lawsuit is not the first time it is happening, EOS had a similar lawsuit against them by the SEC for their four billion dollars mega ICO, and EOS only paid 24 million as a fine.
A settlement has not been reached in the Ripple labs case, and there is currently no conclusion to the case, and the case might last for a couple of months.
If you want to trade XRP, the volatility right now is very good, there are several opportunities, but for investors, who plan on taking long positions on XRP, they have to be very careful. The court case is not over, you as an investor might be optimistic about the outcome of the court case, but the reality is the court case is not over yet.
XRP will pump hard and high but investing long term in it with the unsettled court case is risky. But if you want to get a position on XRP right now, it would be best for you to hold on because there would be a mega dump shortly after the mega pump.
