Via X, Sean McBride, a former director at Ripple, offered an analysis of the perplexing downtrend of the XRP price despite a series of ostensibly positive developments surrounding Ripple and the XRP Ledger (XRPL). McBride’s insights come at a time when XRP’s underperformance in a bullish market continues to baffle investors and industry observers alike.
Why Is XRP Price Down Despite A Slew Of Positive News?
Despite recent bullish periods in the broader crypto market, XRP has notably failed to capitalize on these gains. In a conversation with X users, McBride attributed this lackluster performance to the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), highlighting the critical impact of impending judicial decisions on XRP’s valuation.
On July 13, 2023, Judge Torres’s ruling that XRP is not a security led to a temporary surge by 100% to $0.93, demonstrating the market’s sensitivity to legal developments. However, eleven months later, XRP’s price has halved, reflecting ongoing concerns about the possible long-term implications of the SEC’s actions and the potential for an appeal, which McBride acknowledges could happen unless the ruling is unfavorable to Ripple.
“Nothing significant is going to happen with the price of XRP until Judge Torres makes her decision. So anyone expecting anything different is delusional,” McBride explained, adding “once Torres makes her decision, I think we find out a bit more about what’s actually behind the curtain. This could open up the door for US institutions working with Ripple to ‘flip the switch’. We will just have to wait and see if that’s the case.”
Despite the overshadowing legal drama, Ripple has not been short on positive news. Recently, Ripple announced the creation of the XRPL Japan and Korea Fund on June 11, 2024, a significant initiative with an allocation of 1 billion XRP aimed at catalyzing the growth and development of the XRPL ecosystem in East Asia.
Additionally, Ripple’s strategic acquisitions have been notable. The company has successfully finalized its acquisition of Standard Custody & Trust Company. In May 2023, Ripple further expanded its services by acquiring blockchain firm Metaco for $250 million, and in April, it announced plans to launch a stablecoin aimed at bolstering the XRP Ledger ecosystem.
Commenting on these strategic shifts by Ripple, McBride noted, “Ripple is perfect, they don’t make any mistakes. Their executives fart rainbows. Everything they have done turns to gold. Wake the f*ck up people. If you think that’s how Ripple operates, you’re sorely mistaken. They are vocally self-critical, employees have backbone; disagree and commit. Ripple has changed their strategy many times.”
Notably, Ripple has been proactive in securing over 40 Money Transmitter Licenses (MTLs), necessary for its payment operations across the United States. “The next big piece of this is clear legislation in the US. Hopefully that is on the way with the recent developments in Congress and Trump’s commitment to Crypto (assuming he becomes President),” McBride remarked.
In response to a user’s inquiry about the likelihood of an SEC appeal if Ripple receives a favorable ruling, McBride commented, “Shouldn’t stop what’s happening in the US from happening, IMO, unless of course the ruling is not in Ripple’s favor.”
Addressing another user’s observation about a perceived shift in his tone regarding Ripple and XRP, McBride reassured, “No, not at all. I’m still very positive on Ripple and XRP. […] I’m a big fan, but that doesn’t mean I’m blind to the realities of what’s happening.”
At press time, XRP traded at $0.4818.
XRP price, 1-week chart | Source: XRPUSD on TradingView.com
Featured image created with DALL·E, chart from TradingView.com
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