Ripple, the blockchain firm behind the XRP Ledger, has been the subject of speculation within the crypto community regarding the possibility of abandoning XRP in the future. However, pro-Ripple lawyer John Deaton has dispelled these rumors, citing Ripple’s legal obligation and strong financial position as reasons why the company would not abandon XRP.
Deaton highlights Ripple’s financial evolution over the years to demonstrate the company’s commitment to XRP. In 2015, Ripple had a valuation of $128 million during its Series A funding round. The following year, its valuation jumped to $410 million during its Series B round. By 2020, Ripple’s Series C valuation reached an impressive $10 billion. In 2022, Ripple executed a Series C buyback, further increasing its value to $15 billion, representing a significant 50 percent increase from the previous year.
The lawyer emphasizes that Ripple’s decision to repurchase its Series C shares at an elevated price during a challenging cryptocurrency bear market demonstrates its unwavering confidence in the future of XRP. This move took place before major legal advancements, including the Torres Ruling.
Deaton’s argument is further supported by recent regulatory developments, such as the approval of XRP by the Dubai Financial Services Authority (DFSA) under its virtual assets regime. This approval allows licensed firms in the Dubai International Financial Centre (DIFC) to incorporate XRP as part of their virtual assets services. These developments indicate that XRP continues to gain recognition and acceptance in the global financial industry.
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It is estimated that Ripple currently holds approximately 48 billion XRP tokens, making it a significant player in the XRP market. With the recent regulatory clarity surrounding XRP in the United States, Deaton believes that divesting from XRP at this point would be unwise. He argues that owning such a large amount of XRP puts Ripple in a strong position, as the value of XRP could potentially reach $2, resulting in Ripple’s assets being valued at $100 billion.
It is worth noting that XRP plays a crucial role in Ripple’s On-Demand Liquidity Services (ODL), which provides instant cross-border settlements over the XRP Ledger. One recent example of this is the partnership between Al Maryah Community Bank in the UAE and LuLu Exchange, an associate of Ripple’s ODL service. This partnership aims to facilitate cross-border money transfers and ensure real-time international payments.
From a technical analysis perspective, XRP has been displaying a bullish pattern, with a 32 percent surge since its September 2023 lows. The cryptocurrency has remained within a range observed on July 13 and, given that prices have not fallen below $0.46, the upward trend is expected to continue. This suggests the potential for XRP to revisit its previous highs of $0.93 and potentially even reach $1 or higher.
In conclusion, the idea of Ripple abandoning XRP is dispelled by pro-Ripple lawyer John Deaton, who highlights Ripple’s legal obligation and strong financial position as reasons why the company would not divest from XRP. Recent regulatory approvals and partnerships further support the continued use and acceptance of XRP in the global financial industry. Technical analysis also suggests a bullish outlook for XRP. With all these factors combined, it is clear that Ripple remains committed to the success and growth of XRP.
