Ripple (XRP) Suffers A Big Blow, Investors Remain Cautious
Ripple (XRP) has suffered a big blow in its case with R3 HoldCo, over XRP.
Ripple CEO Brad Garlinghouse may have had a lot of optimism for XRP when he discussed the future of Ripple’s XRP and cryptocurrency last week. Nothing betrayed the fact that the CEO was aware of the ongoing court case involving Ripple Labs. Inc, and R3 HoldCo. But today, Ripple lost its bid to keep that crypto fight in California.
The case that was being heard in San Francisco saw an appeals court deny Ripple an advantage that would have seen the case not taken to R3’s home state Manhattan. The rivalry between R3 and Ripple Labs is over the ownership of XRP, the native currency used by Ripple.
Recent developments come in the wake of positive news related to Ripple. It was reported earlier this week that there is a possibility Ripple could partner Amazon in a market deal that will see its value skyrocket.
The rumors of the possible deal surfaced after it was reported that the e-commerce giant had moved to register various domain names related to cryptocurrency development. Such names included amazoncryptocurrency.com, amazonethereum.com, and amazoncryptocurrencies.com
It is not immediately clear which direction XRP’s price will go but today it is slightly up. Cryptocurrencies are highly speculative and market trends are mostly indicative of community sentiment and not driven by any tangible market fundamentals.
In the wake of the rumored partnership with Amazon, Ripple prices had been expected to rebound quickly after the general market decline that has swept prices of all major cryptocurrencies. Ripple [XRP] had traded at $0.77 which represents a 0.10% gain over a 24h period. Ripple has a market capitalization of $31.2 billion and it is interesting to see how this court battle concludes and where XRP will be then.
The Ripple Development plan should continue
It is assumed that Ripple Labs will continue with its development plans pending the determination of the suit by a New York court. The cryptocurrency has formed numerous partnerships and looks set to ink more in the year. Financial institutions have shown an interest in partnering Ripple on its xRapid platform to fast-track cross-border payments and remittances.
The biggest deal saw it partner 61 banks in Japan to pilot its project. And to bolster its adoption and market penetration, Ripple is embarking on an aggressive investment plan with several startups lined up.
Speaking in Singapore recently, Ripple CEO Brad Garlinghouse commented on where they wanted Ripple to be in the future. He said
“We, Ripple, will stay focused on solving that institutional use case, but we would certainly partner with companies that are looking to use XRP in lots of different ways.”
And in reference to the successful launch of Omni, a San Francisco-based startup that specializes in storage and rental operations, Garlinghouse stated that more would come.
“You should expect that you’ll see more of those,” he added.
Although today’s blow mirrors XRP’s seemingly sliding price, experts still believe that XRP and Ripple have the potential to disrupt the industry. This optimism is borne out of the belief in Ripple’s model and two of its strongest features: fast transaction speeds and low fees compared to other platforms with a similar use.
Craig Cole, a cryptocurrency expert from CryptoMap, sees it going from bad to good, albeit with a detour via the worse like today’s big loss.
He says this about the prospects of Ripple and XRP in the future.
“Ripple is helping financial institutions save money and it is only expected to become even more prevalent in payment flows.
The virtual currency is certainly on the rise and has the potential to be the first token to truly disrupt an industry, and if it does, expect XRP to reach Bitcoin-like levels of ubiquity in the near future.”
What does this mean for Ripple investors?
So far, Ripple [XRP] investors have been quite supportive of the platform, keeping in mind that the case has been on-going since 2017. What we are looking at is for holders of XRP not to panic and exacerbate the already bearish situation that Ripple and indeed the whole market faces. Perhaps this tweet summarizes it best for XRP investors.