The cryptocurrency world has been closely following the legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs for over a year now.
The lawsuit centers around the question of whether or not Ripple’s digital currency, XRP, is security and should have been registered with the SEC. While the case awaits a summary ruling from the US District Court, pro-Ripple attorney John Deaton recently took to Twitter to share his thoughts on the matter.
XRP has the most attractive risk/reward ratio IMO. The Judge’s ruling is coming down w/in the next few weeks (maybe this week). If the SEC wins, what’s the downside from .45? Ripple appeals and we get the status quo. Ripple wins and its made clear XRP isn’t a security? Upside? 🤔
— John E Deaton (@JohnEDeaton1) March 26, 2023
Deaton’s comments were predictably bullish on XRP, arguing that the cryptocurrency currently has the most attractive risk/reward ratio. He claimed that if the courts rule in favor of Ripple, it will become clear that XRP is not a security, which will have a significant impact on price appreciation. However, he also argued that even if the SEC wins, Ripple can appeal and keep the status quo at $0.45.
While Deaton’s comments were met with enthusiasm from some XRP investors, others were more skeptical. Some accused him of trying to influence the price of Ripple before the outcome of the lawsuit comes out. One Twitter user commented, “If you lose the lawsuit, it will drop to 0.10 cents.”
Despite the uncertainty surrounding the lawsuit, XRP’s price has risen by around 20.49% over the past seven days while major cryptocurrencies such as Bitcoin have stagnated. At the time of writing, XRP is trading at $0.46 with a 24-hour trading volume of $1.22 billion.
It remains to be seen what the actual outcome of the lawsuit will be, but it’s clear that XRP investors are eagerly awaiting the verdict. If the courts do rule in favor of Ripple, it could be a significant win for the cryptocurrency and lead to a surge in price. However, if the SEC wins, it could have a devastating impact on XRP’s value. Either way, the cryptocurrency world will be watching closely to see how this legal battle plays out.
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