In the last 6 months, there has been plenty to report about Ripple. The company behind XRP has gone to great lengths to ensure the success of XRP. This has been appreciated by investors and seen more confidence built between the company and its investors.
However, while prices will spike following immediate announcements of new development, XRP prices have remained low. Although the asset has seen massive development in the last few months, prices have failed to rally as expected.
As we reported, Ripple’s recent activity has seen it overshadow Stellar which remains its main competitor. But in recent months, it has appeared that there is potential competition in Libra (if it is ever launched). Ripple executives have dismissed that Libra is a potential threat but given it is backed by the largest social media platform, one cannot dismiss its potential.
For now, XRP seems to be locked in the $0.29 and $0.32 price range. With an all-year high of $0.50, the digital asset has a long way to go before turning extremely bullish. One thing investors are certain of is that when the asset turns strongly bullish, it will have strong support and will easily rally to new highs.
Regulatory Clarity In The U.K, Trouble In The U.S
Boosting its recent development is an announcement in the U.K. Regulators have shed clarity over XRP being a security or utility token. Financial Conduct Authority has revealed that XRP is a utility token like Bitcoin and Ethereum.
This comes as some investors in the U.S amend a class action suit against Ripple. Led by investor Bradley Sostack, these investors claim that Ripple misled investors when selling them XRP. The investors explain that this misinformation saw them buy unregistered security (XRP).
With the matter now in the SEC’s door, Ripple is to respond sometime in September. The issue of XRP being security has long haunted Ripple and threatened its existence. If XRP was ruled to be a security, this would see the company face the authorities for the violation of federal law. It would also see XRP face additional scrutiny from regulators henceforth.