Last year, the U.S. Securities and Exchange Commission filed a lawsuit against Ripple, a payments firm, for selling XRP as an unregistered bond. As a result, several brokers stopped trading with the cryptocurrency.
At the time, this resulted in a 63% decline in Ripple’s market value, which is US$ 16 billion. However, in the first week of 2021, XRP returned to appreciate, with a 30% upward, and since then the token has been recovering.
“Despite this appreciation, we consider that XRP still requires caution, as it has lost some of its attractiveness due to having suffered regulatory pressure”, said Transfero’s Director of Products and Partnerships, Safiri Felix. “Even with the appreciation, it is necessary to follow up the next movements”, he added.
Learn about what happened to XRP
The U.S. lawsuit against Ripple took place in December 2020. In its defense, the company claimed that the XRP token is not a security or an “investment contract”, according to the definitions of United States federal laws.
Moreover, in its argument, Ripple pointed out that XRP can be considered a cryptocurrency in the same way as bitcoin and ethereum.
Anyhow, soon after the lawsuit, in January 2021, the token started to recover. And by early April the token had already accumulated a 90.09% year-to-date high, according to information from Investing.com.
However, even with this rise, XRP is still 67.88% below its all-time high of January 4, 2018, when it reached US$ 3.29.