The price of Ripple Labs’ cryptocurrency, XRP, has plunged 11% during the last day. The decrease follows the filing of a lawsuit against Ripple Labs for securities fraud by the Securities and Exchange Commission of the United States (SEC).
In violation of US securities laws, the SEC claims that Ripple Labs offered XRP as an unregistered security. Additionally, Ripple Labs is accused of making false and deceptive promises concerning XRP in the lawsuit.
The SEC’s allegations have been refuted by Ripple Labs, which has also vowed to forcefully defend itself in court. The business has added that the lawsuit won’t have an impact on operations or its capacity to conduct business.
Investors in cryptocurrencies have suffered greatly as a result of the price decline of XRP. Many investors have suffered severe financial losses.
Ripple Labs’ reputation has suffered as a result of the SEC litigation. The corporation has come under fire for its lack of transparency and how it handled the situation.
In the upcoming months, the SEC action is probably going to continue to have a negative effect on the price of XRP. Until the litigation is concluded, the price of the cryptocurrency may keep decreasing.
If Ripple Labs can prove that there was no wrongdoing, the value of XRP might rise again. The price of XRP is likely to increase if the SEC’s lawsuit is dropped.
The future of XRP ultimately depends on the resolution of the SEC lawsuit. If the SEC wins, XRP is probably going to vanish from the market. However, if Ripple Labs prevails in the legal battle, XRP may bounce back and resume its position as a key cryptocurrency.
