XRP Price Increases Post Court Ruling; Ripple Obtains Singapore License and Joins Georgia's CBDC Research
Summary:
XRP's price rose following a US District Court ruling against the SEC's assertion that XRP is a security. In response to the ruling, law experts voiced mixed opinions. Ripple, the company behind XRP, also gained approval for a digital payment license in Singapore and was chosen to research Georgia's Central Bank Digital Currency. Despite these positive outcomes, demand for XRP futures remained sluggish, hinting that the recent news might not be sufficient to trigger an XRP bull run.
The XRP (XRP) crypto token saw its value climb in response to United States District Judge Analisa Torres of the Southern District of New York dismissing SEC's claim that XRP is a security. This decision caused an immediate price spike taking XRP to $0.55, however, it slid back a little on October 4.
Ripple's positive courtroom outcome sparked diverse reactions from industry experts. In her October 3 ruling, Judge Torres stated that the case didn't need an interlocutory appeal as it didn't involve a "controlling question of law." The legal fraternity specializing in crypto cases had varying views on this.
Attorney Bill Hughes from blockchain-focused firm ConsenSys shared with Cointelegraph that refusal of the SEC's appeal was expected as it is uncommon for such appeals to be considered at this stage of the proceedings. Following the same line, Delphi Labs' General Counsel Gabriel Shapiro cautioned XRP supporters to hold back any premature celebration as the possibility of SEC filing an appeal later still exists and that would happen only after the completion of the trial set for April 23, 2024.
Ripple was further buoyed by the approval of a digital payments license in Singapore for its regional branch, Ripple Markets Asia Pacific. The announcement made on October 4 explained that the "Major Payment Institution (MPI) license" for digital token payments will enable the company to continue operating in Singapore following an in-principle nod from the Monetary Authority of Singapore (MAS) earlier in June. Ripple stated that this license will pave the way for its subsidiary to expand its On-Demand Liquidity (ODL) service, which leverages XRP as a medium to transact between two distinct currencies thereby eliminating the need for pre-funding destination accounts and reducing operational costs.
In other positive news, Ripple was selected as one of the nine companies by the National Bank of Georgia (NBG) to participate in the research for the launch of its own CBDC (Central Bank Digital Currency), the digital lari, on September 28. The country aims to have an accessible pilot environment, selecting only one contender to progress. The NBG announced it was considering issuing a CBDC earlier in May, without specifying a timeline.
Notwithstanding these developments, the demand for XRP futures did not see a significant shift as the aggregate notional of open contracts or 'open interest' moved up by only 13% over the previous day. The existing open interest of $590 million is far less than the $794 million a month back.
Observing the persistent sub-0.01% level of XRP futures funding rate for every eight hours, equivalent to 0.20% per week, it signifies the cost borne by long positions to maintain their leverage. But generally, a rate below 1% per week is not deemed expensive.
Given this inability to breach the $0.54 threshold, marking a six-week high and lackluster leverage demand through futures contracts, it's fair to consider if the recent string of good news has enough weight to push for an XRP bull run.
This news does not intend to serve as any kind of investment advice or suggestion. Every investment move entails risks, thus, individuals are advised to conduct thorough research before making any decisions.
Published At
10/4/2023 3:41:53 PM
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