XRP’s price surged by 26% following a pivotal court decision, Ripple President Monica Long announced plans for a new independent XRP Ledger Foundation amidst a strategic rebranding, and CTO David Schwartz humorously commented on the recent market crash, providing a lighthearted perspective during turbulent times.
XRP Price Surges 26% Following Landmark Court Decision Against Ripple Labs
The cryptocurrency world was abuzz as XRP saw a significant price surge, climbing 26% following a crucial development in the longstanding legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC). On Aug. 7, a New York federal judge brought the three-year securities lawsuit closer to a resolution, a move celebrated by Ripple executives as a monumental win for the industry.
The federal judge’s ruling mandated Ripple Labs to pay a $125 million civil penalty and imposed a permanent injunction preventing the firm from violating U.S. securities laws. This decision stems from the SEC’s allegations that Ripple conducted an unregistered securities offering by selling XRP. The case has been a focal point in the broader debate over the classification and regulation of cryptocurrencies in the United States.
Upon the announcement of the court’s decision, XRP’s price skyrocketed to $0.63, a 26% increase that recouped most of the losses it suffered during the broader crypto market downturn since Aug. 5.
Ripple Labs CEO Brad Garlinghouse took to X to express his satisfaction with the court’s ruling. ”This is a victory for Ripple, the industry, and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone,” Garlinghouse proclaimed.
Co-founder Chris Larsen echoed this sentiment, highlighting the broader implications of the decision. ”The SEC’s unhinged campaign against us is finally over. Let’s all hope this ends this Administration’s war on crypto,” Larsen stated, emphasizing the relief felt within the company and the community.
The reaction from the crypto community was swift and enthusiastic. Fred Rispoli, a crypto lawyer and founder of Hodl Law, commented on the significant market impact of the ruling. ”Overall, a HUGE win for Ripple. Although I’m surprised at the $125M hit, Ripple more than made that just on the price move in XRP in the last 5 minutes,” Rispoli wrote in an X post.
Renowned crypto researcher Ripple Van Winkle also shared their excitement, declaring, ”XRP IS READY TO FLY. NO MORE HOLDING IT BACK! NO MORE PRICE SUPPRESSION! THE LAWSUIT IS DONE!!” This sentiment was mirrored across the community, reflecting a collective sigh of relief and anticipation for future gains.
The price surge caught many future traders off guard, leading to significant liquidations in short positions. According to data from CoinGlass, $5.4 million worth of short positions were liquidated within hours of the price jump, as traders who had bet against XRP’s rise were forced to cover their losses.
Further analysis suggests that if XRP’s upward momentum continues and the price reaches $0.65, an additional $20 million in short positions could be liquidated. Conversely, a retracement to $0.55 could result in nearly $25 million in long positions being wiped out, underscoring the high stakes involved for traders.
A Broader Market Perspective
XRP’s impressive performance is set against a backdrop of broader positive trends for the cryptocurrency. Over the past 30 days, XRP has surged by 44.88%, according to CoinMarketCap. This upward trajectory has bolstered confidence among investors and market participants, who view the court ruling as a potential turning point for Ripple and the broader crypto market.
The resolution of the Ripple lawsuit may also have far-reaching implications for the regulation of cryptocurrencies in the United States. Industry stakeholders are hopeful that this decision will lead to clearer guidelines and a more favorable regulatory environment, fostering innovation and growth within the sector.
The recent court ruling against Ripple Labs marks a significant milestone in the ongoing battle between the SEC and the cryptocurrency industry. As XRP’s price surges in response to the news, the broader crypto community is watching closely, hopeful that this victory will pave the way for a more favorable regulatory landscape. Ripple Labs’ leadership remains optimistic, and the market’s reaction suggests that the future could be bright for XRP and the broader cryptocurrency ecosystem.
Ripple Announces New Independent XRP Ledger Foundation Amid Strategic Rebranding
Meanwhile, Ripple President Monica Long recently revealed plans for a new, independent XRP Ledger Foundation. This announcement comes on the heels of the renaming of the existing XRP Ledger Foundation to the Inclusive Financial Technology Foundation (INFTF).
The decision to form a new XRPL Foundation emerged in response to inquiries from the XRP Ledger community. A community member had asked whether there were plans to discontinue the existing XRP Ledger Foundation following its transition to INFTF. The member also sought clarity on Ripple’s ongoing support for the XRPL and the measures being taken to ensure its continued innovation and stability.
Monica Long responded to these concerns, affirming that there are active discussions involving the XRPL Foundation, XRPL Labs, XRPL Commons, Ripple, and other stakeholders. These discussions aim to establish an entirely new and independent XRPL Foundation, distinct from the newly renamed INFTF.
Ripple CTO David Schwartz provided additional insights, stating that Ripple has been in conversations with the existing XRP Ledger entity to determine the best way forward. ”We are aligned on the next steps, and specifics will be shared as soon as possible,” Schwartz said, emphasizing the collaborative approach being taken to serve the interests of the XRP Ledger and its community.
On Aug. 6, the XRP Ledger Foundation announced its rebranding to the Inclusive Financial Technology Foundation (INFTF). The name change is part of a broader vision for the organization. According to the announcement, the rebranding is driven by the realization that being tied to a single technology can be limiting. INFTF aims to explore and promote solutions beyond the scope of what was expected from an entity known as The XRP Ledger Foundation.
The INFTF’s new mandate includes working with various international organizations to promote global social and financial inclusion. For instance, the INFTF is an associate member of the Organisation for Southern Cooperation, which comprises 28 member countries. This shift provides an opportunity for various XRP Ledger stakeholders to collaborate and maintain essential elements currently under the foundation’s stewardship, such as the XRP trademark, the code repository, and the xrpl.org domain.
Implications for the XRP Ledger Community
The formation of a new, independent XRPL Foundation signifies Ripple’s dedication to fostering a robust and decentralized ecosystem. The foundation will focus on ensuring the XRPL’s stability and ongoing innovation while promoting its decentralization. This move is likely to reassure the community that Ripple is committed to the long-term success of the XRP Ledger.
The rebranding to INFTF also indicates a strategic pivot towards broader financial inclusion goals. By detaching itself from being exclusively associated with XRP Ledger, INFTF can now explore diverse technological solutions to address global financial inclusion challenges. This broader mission aligns with Ripple’s overarching vision of creating a more inclusive financial system.
David Schwartz’s Witty Take on Market Crash Sparks Conversations Amid Crypto and Traditional Market Rebounds
David Schwartz, the chief technology officer at Ripple and one of the masterminds behind the XRP Ledger, recently stirred a buzz on social media with his lighthearted yet poignant commentary on the recent market crash that rattled both traditional financial markets and the cryptocurrency sphere. Sharing his thoughts on X, Schwartz’s humorous tweet generated a wave of reactions from the XRP community and beyond.
In his tweet, Schwartz drew a whimsical parallel to a piece of childhood advice, saying, ”It’s times like this when the market is crashing and everyone is panicking that I wish I had listened to what my mother told me as a child.” The tweet, clearly intended as a joke, left many followers curious about the nature of his mother’s advice. When prompted by multiple commentators for the specifics, Schwartz delivered the punchline: ”I don’t know! I didn’t listen.”
This blend of humor and reflection resonated with many in the XRP community, providing a moment of levity amid the financial turbulence. Schwartz’s knack for combining wit with wisdom has long endeared him to the crypto community, and this tweet was no exception.
The recent crash, which had sent shockwaves through both cryptocurrency and traditional financial markets, saw Bitcoin plummet by more than 18% since Sunday, hitting lows around $54,750. This decline was part of a broader downward trend that began on July 29, with Bitcoin shedding 28.70% of its value from its peak near $69,840. However, in the past 24 hours, Bitcoin has managed to claw back some of its losses, recovering by 12.6% to regain the $56,000 level.
The recovery in Bitcoin’s price has been mirrored by a broader market rebound. Ethereum, the second-largest cryptocurrency by market capitalization, also saw a significant recovery, trading at $2,470 after an 11% uptick.
Traditional Markets and Crypto Interplay
The cryptocurrency market’s recovery has coincided with a rebound in traditional financial markets. The recent crash was exacerbated by substantial liquidations as traders, gripped by fear, sought to minimize their losses. This sell-off was not confined to cryptocurrencies; major U.S. indexes such as the S&P 500 and the Nasdaq experienced sharp declines, reflecting a global risk-off sentiment.
Interestingly, the revival of the crypto markets was influenced by a positive turnaround in the Japanese stock market. The Nikkei 225, Japan’s leading stock index, posted significant gains, helping to stabilize market sentiment globally.
Schwartz’s tweet and the ensuing market rebound have sparked a variety of discussions within the crypto community. Many appreciated the humor in Schwartz’s message, while others used the moment to reflect on the volatility inherent in financial markets. The recovery in Bitcoin and Ethereum has provided a glimmer of hope for investors, suggesting that the worst of the panic may be over, at least for now.
This article was originally Posted on Coinpaper.com
