Today’s Ripple (XRP) News
By design, cryptocurrencies were made to reduce government control. It is through this realization that governments across the world are trying to regulate cryptocurrencies and blockchain in general. But it is not rocket science to see why they are trying to do this. Firstly, cryptocurrencies are global and as fiat competitors, they are better and immune to local politics. Secondly, by putting in place measures, they will have controls in place to efficiently collect taxes and even put in place necessary funds to expand digital currency by investing in crypto infrastructure.
Read: Mexico’s Attempt To Regulate Crypto Has Turned Into a Disaster, May Cripple the Economy
With the world shifting to cryptocurrency and adopting blockchain based solutions, regulations are maturing and now Mexico is planning to introduce their rules in a bid to regulate cryptocurrencies. Through the Official Gazette of the Federation, the Bank of Mexico issued a statement of their intent to implement laws that clarify their positions on cryptocurrencies.
Although we can glean from previous bills that the country may classify digital assets as property subject to taxation and not legal tender like government-issued fiat, there is a general consensus that despite the advantages presented by this burgeoning technology there is need to put in place regulations that foster development while not stifling innovation.
Also Read: South Korea’s Biggest Exchange BitHumb Will Slash Half of Its Staff as Bear Market Blues Strike Again
But it will be a delicate balance between efficacy and preventing total control. On one hand, proposed laws should not give governments strong hands to in a very short notice bar crypto-based transactions now that Mexico is a remittance hub and a region where Ripple Inc is working overtime to create payment corridors.
XRP/USD Price Analysis
At the time of press, Ripple (XRP) is trading within a tight trade range with caps at 4 cents. Although we are bullish on the third most valuable cryptocurrency, we also realize that the coin is under pressure and yet to breach and close above 34 cents, a key resistance level and a price tag of interest.
Unless otherwise, price action proves us wrong, we shall hold a neutral stand on XRP and the only time we shall execute long positions is when prices race above 34 cents at the back of high transaction volumes preferably exceeding those of Feb 24—61 million but most importantly above averages of 15 million.
Technically, that rally will be a confirmatory move complementing bulls of Jan29-30 as well as those of Feb 25—when CoinBase announced their listing—which is bullish from an effort versus results point to point of view. It is once prices close above 40 cents is when XRP bulls would have little upside resistance and would likely print above 60 cents by mid-Q2 2019.
Ripple’s XRP technical analysis: XRP/USD weekly chart remains largely bearish
- Ripple’s XRP price is trading in the green by some 0.15% in the session on Friday.
- XRP/USD price action via the weekly chart view remains largely tilted to the downside.
- The price is running at its five consecutive weeks trading in the red.
XRP/USD weekly chart
The next major weekly support to the downside is eyed at $0.2000.
XRP/USD daily chart
A bearish pennant can be eyed via the daily, but also a double bottom formation.
Spot rate: 0.2223
Relative change: +0.15%
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Ripple Tries to Dismiss Unregistered Securities Lawsuit
Ripple has made a last-minute attempt to dismiss the lawsuit against the company by filling new documents with the U.S. District Court for the Northern District of California that potentially on Wednesday, Dec. 4 as reported by Coindesk.
According to a new filing from the company Ripple claims the investors who are suing the company for an alleged unregistered securities sale brought their case too late. The filing is apparently the Ripple’s last-minute effort to get the court to drop an amended class-action lawsuit that was filed in August. The hearing is scheduled for January 15th, 2020.
Despite the plaintiff’s claims that Ripple’s engaged in an ongoing offering of XRP which should be considered as securities, Ripple argues that it only began distributing XRP in 2013. Thus, any case brought after the three-year nonclaim statute should be dismissed according to the law.
Ripple’s latest set arguments are predominantly a repeat of what the company stated previously. Apart from the fact that the statute of repose has passed on the case, the company also claims that the plaintiff has not been able to demonstrate any significant evidence that he actually purchased XRP from any of the defendants, either that being Ripple Labs Inc., XRP II, LLC, Bradley Garlinghouse or Ripple’s an initial coin offering. The filing hits at such claims by stating that there was a “one-in-ten-thousand chance” that the plaintiff could have purchased XRP from Ripple or other defendants.
Ripple also questioning the plaintiff’s response, filed Nov. 4, which states “Ripple issues new XRP from escrow for the first time each month for sale to the public.” According to the Dec. 4 filing, by Ripple, this argument contradicts the plaintiff’s original complaint, which suggested that “all 100 billion XRP was created out of thin air by Ripple in 2013, prior to its distribution to investors.” According to the filing, “Ripple’s alleged exchange sales of XRP accounted for .095 percent—less than one-tenth of one percent—of the total volume of XRP sold on exchanges” during the time period Sostack said he bought XRP.
Ripple and Forte Want to Transform Gaming Industry
Ripple partner, gaming company Forte says it’s looking to use XRP and the Interledger Protocol to develop blockchain-based games which will also include XRP tokens as a settlement currency.
In March this year, Xpring an investment arm of Ripple has formed a partnership with Forte with an aim to accelerate the adoption of blockchain technology in games. Ripple and Forte will jointly invest $100 million in companies and projects focused on the development of blockchain-based games that will also utilize cryptocurrency XRP.
In a post on Ripple website, Forte co-founder Brett Seyler stated the company is specifically looking at how the blockchain technology can help companies in the $140 billion industry create free-to-play games with in-game purchase options.
“The free-to-play business model dominates the way games are run now. This model has grown the gaming industry more than any other business model in the last ten years”,
XRP will be a perfect fit for such in-game purchases due to the very low cost of the transaction and its speed.
The difference between traditional games and blockchain games is that the “code and logic of blockchain games could be written in smart contracts and run on blockchains”. The advantages are clear as blockchain technology offers greater transparency and data immutability, thus making games more decentralized and controlled by the gaming community rathert than games being fully under the control of developers.