The Ripple ecosystem’s native token, XRP, experienced a surge of over 10% on November 6th, making it the fourth-largest cryptocurrency by market capitalization at the start of the trading week. As of press time, XRP is trading at $0.714 according to CryptoSlate data.
This surge in value can be attributed to several factors, including excitement surrounding Ripple’s upcoming Swell conference, regulatory approvals, and the ever-evolving cryptocurrency landscape.
XRP has been steadily gaining value since Grayscale’s spot Bitcoin ETF made headlines, causing the overall crypto market to reach new highs for the year. However, the token saw a significant surge on November 6th due to several positive developments over the past week.
One notable development was Ripple’s acquisition of approval to operate within the free trade zone of the Dubai International Financial Centre (DIFC). This approval legitimizes the use of XRP tokens by financial institutions in the DIFC, further establishing its credibility within the financial ecosystem.
The mounting excitement is primarily centered around Ripple’s upcoming Swell conference in Dubai on November 8th and 9th. Speculations are circulating that Ripple may unveil plans for an Initial Public Offering (IPO) during the event, and its approval by the DIFC serves as a precursor to this announcement.
It’s worth mentioning that previous editions of the Swell conference have often resulted in positive reactions in XRP’s price, and the market seems to be reflecting a similar sentiment this year.
Furthermore, Ripple continues to establish partnerships with central banks worldwide and solidify its position in the realm of central bank digital currencies (CBDCs). The National Bank of Georgia is the latest institution to choose Ripple to develop its CBDC project, known as the digital lari.
Regarding Ripple’s ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC), multiple crypto lawyers believe that Ripple is in a strong position to win the case. Experts anticipate that the SEC will offer the company a settlement deal ranging from hundreds of millions of dollars to $20 million.
The SEC is seeking a significant penalty of $770 million, alleging illegal XRP sales to institutional investors. However, lawyers argue that the actual amount will likely be much smaller.
Jeremy Hogan, an attorney and partner at Hogan & Hogan, provided insights into disgorgement in the case. Hogan explained that Ripple may have two arguments in response. First, they could argue that disgorgement should be based on net profits rather than gross profits, as established in the SEC v Liu case from 2020. This means that business expenses should be deducted from the total. Secondly, Hogan pointed out that disgorgement should be awarded to the victims, referring to individuals or entities that incurred losses on their XRP investments. If an XRP purchaser bought the cryptocurrency at $0.30 and it is now valued at $0.60, they may not be considered a victim, and therefore, no disgorgement would apply.
Hogan also raised questions about the SEC’s jurisdiction over sales to entities that do not have a connection to the U.S.
In conclusion, XRP has experienced a significant surge in value due to positive developments, anticipation for Ripple’s Swell conference, and regulatory approvals. Ripple’s ongoing legal dispute with the SEC is being closely watched, with expectations of a settlement in the near future.
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