Those who have been following the cryptocurrency industry for a long time would know what kind of trouble Ripple had to go through in the past couple of years.
From being the third-largest cryptocurrency asset by valuation to falling to the lowest trading level, Ripple’s native token has seen it all.
Ripple’s business was going well and its native token was among the top choices of the crypto trading experts. However, the US Securities and Exchange Commission (SEC) had an issue with the company.
It alleged that Ripple was distributing its native token “XRP” to the local citizens without a proper authorization.
On the other hand, Ripple was confident that it was not breaking any laws or breaching any regulatory requirements. It continued offering its services to the US locals until the US SEC filed a lawsuit against it.
Ripple’s Demise and Struggle
The US SEC filed the lawsuit against Ripple in December 2020 and since then, the battle has continued between both sides.
In the beginning, it seemed that the US SEC had the upper hand but towards the end of 2021, it was confirmed that Ripple is to win the case.
The legal teams of Ripple have provided enough proofs and evidence proving that XRP is not a security, thus, requires no authorization.
Despite Ripple having the lead in the case, the trading price of XRP has continued suffering. Prior to the US SEC filing the case against Ripple, the valuation of XRP was over $50 billion but it plunged to below $10 billion.
XRP has Survived
Due to the lawsuit, almost every US-based cryptocurrency broker and exchange had to delist XRP.
Still, the international investors and cryptocurrency firms have continued supporting XRP. This is the reason why the digital asset has managed to survive through the difficult times.
In the recent hearings, the US SEC has filed a motion asking for more time to revert to Ripple with answers to their questions.
On the other hand, Ripple has filed a motion to reject SEC’s motion and announce the final verdict. Ripple is supported by over 15 cryptocurrency firms that have filed amicus brief in favor of the company.
Coinbase, a major crypto exchange is also among the supporters. If things go in favor of Ripple, then the asset may become the most successful one in the year 2023.