Ripple (XRP) has experienced a slight increase of 1.1% in the last 24 hours, but has recently suffered a decrease of 0.5%, causing its value to drop to $0.52. This unremarkable trend reflects the current situation where Bitcoin is struggling to surpass the $64,000 resistance level, while Ethereum’s prices fluctuate between the support level of $3,100 and the resistance level of $3,200.
Developments in XRP and the SEC Case
Ripple, the issuer of XRP, has recently made notable changes to its network, which is well-known for its blockchain-based cross-border payment capabilities. Despite the ongoing lawsuit between Ripple and the SEC, which offers little hope for a positive outcome for XRP, the blockchain company is making structural adjustments to its On-Demand Liquidity (ODL) service, particularly for its customers in the United States.
Based on a recent court filing, Ripple has decided to adopt the largest stablecoin, USDT, for use by its American clients. Ripple is facing challenges with its ODL clients, but these customers will now be handled by a subsidiary located in Singapore.
This move is considered necessary due to a court ruling last year that classified corporate XRP sales as securities. As a result, Ripple could potentially be fined $2 billion for violating US securities laws.
Expert Opinion on Ripple’s Strategy
Ripple has shifted its focus away from XRP sales in the United States, but it continues to indirectly engage in similar sales with firms located outside of the country. American companies are now transitioning to the use of USDT, which has implications for exchange transactions. According to Bill Morgan, a lawyer and cryptocurrency enthusiast, this shift is worrisome for XRP. He expressed his concerns by stating:
“XRP holders are feeling anxious as they await the court’s decision in the ongoing lawsuit. Some investors are also skeptical about the effectiveness of Ripple’s potential departure from the United States, indicating that they are prepared to exit.”
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is recommended that individuals conduct their own research before making any investment decisions.
