Whilst other cryptocurrencies are slowly picking up around, Ripple’s value has still not yet reached a dollar. Despite the partnerships it has made with major banks, the value has not gone up. Ripple investors are understandably getting a little anxious about this, and where they stand with their investments.
On the 25th April this year, XRP was valued at $0.957, and this is the closest to $1. Although it is hovering around $0.80 at the moment, it is not showing any attempt of breaking this $1 barrier anytime soon.
So what is happening, and is it really all over for Ripple? One major hit is a lawsuit that the cryptocurrency is currently facing, which states that Ripple is scamming people through a never ending ICO. Late last week, a class action suit was filed in California, which accused Ripple Labs for doing several things; carrying out an unregistered offer and sale of securities in violation of sections 5 and 12(a)(1) of the US Securities act, carrying out an unregistered offer and sale of securities in violation of section 25110 and 25503 California Corporations Code, being in violation of section 15 of the US Securities act and finally being in violation of California Corporations Code Section 25504. However; for this lawsuit to go ahead, Ripple has to be classed as a security.
So what is a security, and does it apply to Ripple? It is defined as an interchangeable and negotiable financial instrument, holding monetary value. It is an ownership position in a publicly traded corporation, a creditor relationship with a governmental body or a corporation, or rights to ownership as represented by an option. This definition would clearly imply that the lawsuit does not hold any strength, as the parent company of Ripple is not traded via stocks publicly.
The future of Ripple does however lie in this lawsuit and how the ruling goes. Because there are very few regulations in the crypto market, it would be hard to pass judgement, but only time will tell.