Ripple's former director of developer relations, Matt Hamilton, once again addressed the XRP community, clarifying rumors of a possible government buyback of the token from the market. Like last time, he stated that such a course of action would not be possible, the main reason being that the value of digital assets is ascribed by their users.
There is a small, but very vocal minority of the XRP Community that is promoting a crazy idea of the US government buying back / confiscating XRP from US citizens, yet for some strange reason compensating them 100's of 1000's of % above market rate.
— Matt Hamilton (@HammerToe) January 12, 2023
"XRP and Bitcoin have no intrinsic value; their value is determined by a set of transactional rules devised by a decentralized group of people," the developer argued.
What XRP confiscation?
As well as refuting yet another round of nonsense about XRP being bought back by the government, Hamilton also broke down talk of possible confiscation. This speculation has emerged as an extension of the original conspiracy theory. As a reminder, there are rumors that XRP is to be confiscated from the market by the same government for its own use and so that the technology is not spread anywhere else.
According to Hamilton, confiscation of XRP is impossible for at least three reasons. First, the developer notes, XRP is a decentralized cryptocurrency and cannot be seized without forcing key holders. Second, it is easier for the government to create its own digital token if it need it for its own use. Finally, if the U.S. government restricts everyone from using XRP, it would kill any use of the token and it would simply be replaced by a fork.
FAQs
According to Hamilton, confiscation of XRP is impossible for at least three reasons. First, the developer notes, XRP is a decentralized cryptocurrency and cannot be seized without forcing key holders. Second, it is easier for the government to create its own digital token if it need it for its own use.
What will happen to XRP holders? ›
XRP holders lose interest, shed holdings as Ripple and SEC seal lawsuit proceedings.
Why is XRP going to explode? ›
“The partial resolution of the dispute with the US Securities and Exchange Commission (SEC) could potentially spur growth for XRP in the near future,” explains Drozdz. This legal battle has been a significant factor in XRP's performance, with developments closely watched by investors and the wider crypto community.
Why not to buy XRP? ›
XRP's regulatory issues
According to the SEC, XRP is a "security," and it is doing everything in its power to regulate it as such. That's terrible news for investors. It means that XRP's core business operations have been sidelined in the United States until this regulatory mess gets cleared up.
What will happen to XRP if they lose lawsuit? ›
However, if Ripple loses all appeals, the SEC is likely to collect the $1.3 billion (the amount that the regulator alleges that Ripple earned from the unregistered securities sale) and offer XRP holders an option to sell their holdings.
Can I lose my XRP? ›
If you make an XRP transfer without a destination tag to a deposit address that requires it, the funds may be lost or you may need to pay an extra fee for retrieving them.
Has XRP won the lawsuit? ›
The outcome of the U.S. regulator's court case against Ripple might still have far-reaching consequences for the cryptocurrency industry. Ripple emerged somewhat victorious in this court case, and two defendants await trial and final judgments on aiding and abetting the offerings.
How high can XRP realistically go? ›
Therefore, our XRP price prediction forecasts a price of $1.80 by the end of 2024. Depending on the lawsuit's outcome and crypto market conditions, it could go much higher, potentially reaching $3.10.
What will 1 XRP be worth in 2025? ›
XRP Prediction Table
| Year | Minimum Price | Average Price |
|---|
| 2025 | $0.90910908 | $0.93460653 |
| 2026 | $1.27 | $1.32 |
| 2027 | $1.81 | $1.86 |
| 2028 | $2.64 | $2.73 |
8 more rowsWhile the $10 level is often cited as a possible target by the extremely bullish, a lot of this will come down to whether or not the banks will continue to adopt XRP for cross-border payments. Also, now that the ongoing lawsuit with the SEC has concluded XRP's price could travel much, much higher.
In a recent proposal by Edward Farina, the Head of Social Adoption at #XRPUpdate Healthcare, a hypothetical scenario was presented whereby the price of XRP has the potential to see a significant increase, reaching a value of $10,000.
Why are so many people buying XRP? ›
Potential store of value: While XRP's primary function is in payments, some investors and speculators view it as a potential store of value, similar to Bitcoin. Others are drawn to the potential for price appreciation in XRP and other cryptocurrencies, betting on quick and massive price increases.
Is XRP designed to be $10 000? ›
The design choices behind XRP lead us to believe that it was crafted to operate at $10,000 and cater to a truly global market.
Why is XRP under investigation? ›
But why did the SEC sue Ripple? The SEC alleged that the executives held an initial public offering (IPO) of XRP, which was an unregistered security at the time of raising capital.
How long will the XRP lawsuit take? ›
The SEC may begin preparing an appeal that could leave XRP sidelined through H2 2024. However, SEC plans to appeal against the Programmatic Sales ruling hinge on the outcome of, Coinbase (COIN) Motion to Dismiss (MTD) all charges in the ongoing SEC v Coinbase case.
Will Ripple go public after lawsuit? ›
However, the firm has put any plans for an IPO on hold for now, Garlinghouse said. Garlinghouse told CNBC in 2022 that Ripple, the company behind the cryptocurrency XRP , will explore a public listing after its lawsuit with the U.S. Securities and Exchange Commission ends.
Does XRP have a future? ›
The analyst foresees a potential surge, projecting XRP's price to range between $5.59 to $11.26 by the end of the year, buoyed by potential inflows totaling $33 billion into its market cap by 2025. This surge, fueled by growing adoption and potential market expansion, suggests a notable XRP value appreciation.
What is the future of money for XRP? ›
Market experts expect that in December 2024, the XRP value will not drop below a minimum of $$0.543. The maximum peak expected this month is $$0.585. The estimated average trading value will be at the level of $$0.564.
Which crypto will explode in 2024? ›
Solana (SOL)
Its ability to support sophisticated decentralised applications (dApps) while maintaining scalability is a significant driver for its potential explosion in 2024. As developers and financial markets look for efficient blockchain solutions, Solana stands at the vanguard of possible bull market trends.
What is the price prediction for XRP after SEC lawsuit? ›
The SEC v. RIPPLE case will come to an End and #XRP will become the first digital asset with FULL regulatory clarity in the United States of America for cross-border settlements! Notably, the outlook suggests the community pundit expects XRP to be between $100 and $10,000 sometime in the future.
