ZCash, IOTA, XRP

Ripple labs has been sued again, in a class action lawsuit, over its control of ripple (XRP). According to the lawsuit, ripple labs and its CEO Brad Garlinghouse have, “promoted, sold and solicited the sale of XRP.” The lawsuit also argues that the defendants raised millions of dollars, through unregistered sale of XRP.” Basically this lawsuit follows the now old narrative that ripple (XRP) is a security. So is ripple (XRP) really a security? The answer is still NO.

There is no evidence that ripple (XRP) is a security. The whole confusion around ripple labs and ripple (XRP) comes from the fact that ripple labs control a huge amount of XRP.  Beyond that there is really no connection between the two, in the securities sense.

To make things clearer, ripple labs is the company that controls ripple net. This is a technology that works in a similar manner to a credit card. When a person makes a payment via ripple net, no currency moves. It simply creates an obligation for the sender’s balance to be deducted in order to credit that of the recipient of value.

For the whole transaction to be deemed complete, a third party has to actually take value from the senders account and credit it to the receivers account, in a process known as settlement. This is where the connection between ripple labs, ripple net and ripple XRP network comes into play. Unlike banks that use fiat such as the USD in such settlements, ripple labs makes use of ripple (XRP) to complete the transaction. Just like the transacting banks don’t control the dollar or any other fiat that they use in such settlements, ripple too does not control XRP. They can as well use ripple or any other crypto for such settlements. They only use ripple because it is very efficient in terms of speeds, and transaction costs.

In essence, no matter how many lawsuits come along, there is a very low chance that it will ever be declared a security.  For ripple (XRP) investors, these lawsuits are an opportunity to buy. That’s because the moment the SEC comes out clearly, and states that XRP is not a security, its value will be headed to the moon. That’s the moment when central banks, and the entire global banking ecosystem will move to adopt ripple (XRP).  Japan is already leading the way on this front, through the SBI consortium.

Besides, all these lawsuits and debates around the status of XRP will only hasten the decision by the SEC about ripple (XRP). These could be the very last days when ripple (XRP) trades at just a few cents. By the end of the year, ripple (XRP) could be headed to a valuation of over $100. The fundamentals are all good for such a massive price move.  It’s time to jump into the ripple (XRP) bandwagon before it makes a massive move, and gets adopted all across the world.

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