XRP is the native cryptocurrency of Ripple, a payment protocol that uses blockchain technology to make transactions fast and cheap. Ripple is designed to facilitate international money transfers, and it has partnered with hundreds of financial institutions that use its technology. Ripple was founded in 2012, but became embroiled in a lawsuit filed by the Securities and Exchange Commission (SEC) in late 2020, prompting most major US crypto exchanges to delist the company.
Fortunately for investors, Ripple has (mostly) come out on top in its long-running battle with the SEC. A judge ruled that Ripple did not violate security laws by selling XRP on cryptocurrency exchanges, but rather did so through sales to institutional investors. Still, the news sent XRP’s price soaring, and it could be accompanied by further increases in the cryptocurrency’s value and trading volume in the future.
Why can Ripple be included in the list of cheap cryptocurrencies that have a future and will explode soon?
Ripple’s original mission was a bold one, and it seems to be finally paying off. The recent legal victory has sent the price of XRP up by over 70%, showing just how much investor support there is for Ripple. Fast settlement times and accurate fees make it a popular choice for both individuals and businesses. While Ripple Labs is not out of the woods yet, the legal situation seems to be in its favor.
The risks involved
While XRP is often touted as the next cheap cryptocurrency to boom after its SEC win, Ripple CEOs Chris Larsen and Brad Garlinghouse still face pending lawsuits. The litigation could depress the price of Ripple and hurt sentiment among the crypto community.
