Ripple’s XPR Token Experiences Strong Value Fluctuation – GamblingNews.com


Ripple’s XPR token is down 17%, following the rapid drop on Wednesday and the sudden spike on Friday.

Fluctuation Following SEC Lawsuit

Ripple’s XPR cryptocurrency is experiencing significant fluctuations. XPR is a Real Time Gross Settlement System that allows traders to circumvent the traditional fees and wait times associated with banks.

On 24 December, the price skyrocketed after experiencing a severe downturn only two days prior. Today, the price fell again by over 17%.

The wave of fluctuation was kicked off back at the end of November this year when the XPR token spiked up to over double what it is currently worth. Despite regular oscillations, the currency maintained its price level for some time.

The drop came Wednesday this week after the US Securities Exchange Commission (SEC) filed a lawsuit against blockchain company Ripple over suspected malpractice. SEC does not consider the XPR token as a valid form of cryptocurrency. From the regulator’s point of view, Ripple has been running a $1.3 billion unregistered offering.

The lawsuit names two of Ripple’s executives, including CEO Bradley Garlinghouse. According to him, SEC had not provided sufficient clarity as to whether the token is considered a cryptocurrency or a form of security. Mr. Garlinghouse disputed the lawsuit on Ripple’s company blog, calling SEC’s decision “illogical”.

The cryptocurrency market has been in an upsurge this last decade, and especially this year, so SEC and other regulatory agencies have been struggling keeping up.

Subsequent Upset and Outlook

Only two days after the sudden plunge, XPR surged back up again – the price grew by 52% at the day’s peak and averaged out at around 40% for the day. The surprising increase is a consequence of the big short squeeze following SEC’s decision, which substantially increased the token’s volatility.

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SEC’s lawsuit announcement was followed by an almost immediate and excessive shorting. However, the swaying gave rise to a short squeeze on 25 December, which in turn lead to a sudden upsurge.

Analysts are polarized in their expectations for the cryptocurrency’s immediate future. The first point of contention is SEC’s classification of the XPR token. Some analysts disagree with its classification as a security, to begin with.

Secondly, many have argued that XPR is a globally traded cryptocurrency. Therefore, even if the lawsuit passes in favor of SEC, this alone will not mean the end of XPR. Furthermore, some analysts have pointed out that the majority of XPR trading happens outside of the US market – as much as 90%, an anonymous analyst has claimed. The same analyst also argued that XPR is not considered a security in the UK, Singapore, Switzerland, and Japan.

Others believe that the lawsuit will indeed have a substantial impact, given that Ripple is a US-based company and that the crypto supply is managed by a US citizen.

Today, 26 December, XPR is down -17.54% in the last 24 hours.



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