The United States Securities & Exchange Commission (SEC) has filed a lawsuit against Ripple. Accordingly, the SEC assessed Ripple’s XRP coin as a security and accused Ripple of illegally offering securities. However, CEO Brad Garlinghouse complained, arguing that XRP is not a security. The value of the XRP coin does not depend on the performance of Ripple. Even so, Ripple may still have to stop operating in the US if it fails to reach cooperation agreements in the country.
Currently, there is no final US ruling but this lawsuit still has a serious impact on the price of XRP in the market. Because after the SEC sued Ripple, Coinbase – a major exchange delisted XRP. This move caused a series of other exchanges to also suspend XRP trading, causing the price of XRP to plummet.
XRP price prediction in 2021
Recently, Ripple is making many plans to develop its business, including the lending sector. Specifically, Ripple will provide credit for customers to use in liquidity on the RippleNet platform with low fees. If this plan is implemented, it will create a new step in Ripple’s business, motivating users to actively use their platform for multinational payments. In addition, institutions can also purchase XRP on the RippleNet platform with credit for a fee as a concessional loan.
In addition, Ripple is looking for high-quality engineers to build a new decentralized platform. When this news of Ripple appeared, it attracted the attention of many investors. In particular, in 2020, Ripple announced a partnership with 8 major banks in India. In the future, this unit will continue to promote cooperation with many other banks in Asia.
Should hold or release XRP now?
Commenting on the XRP coin, experts say that XRP possesses many advantages that other competitors do not have. Issued by a large financial institution, with high liquidity, wide application. Especially, in the current context, when financial institutions start to pay more attention to the crypto sector. Ripple has the advantage of cooperating with many major financial institutions in many countries around the world and promising future plans, XRP coin offers investors unexpected promises.
However, the SEC lawsuit has adversely affected the price of XRP. Therefore, many experts predict XRP in 2021 may continue to decline. But most of them expect XRP to be profitable for investors if you have a long-term investment strategy. So, in the current context, should investors trade coins buy, sell or hold XRP?
In the crypto market, there are always unexpected developments that any experienced investor cannot predict. Therefore, before deciding to buy, sell or hold XRP, investors should use technical analysis measures combined with the ability to analyze the market and consult with reputable experts.