Ripple’s XRP has experienced a significant change in status following its partial victory against the United States Securities and Exchange Commission (SEC) in July. This ruling declared that XRP is not considered a security when traded on secondary marketplaces. As a result, new beneficial partnerships have emerged in the crypto industry. Many exchanges that previously delisted the Ripple native token, such as Coinbase and Kraken, have now relisted it. This shift has sparked speculation about a potential collaboration between global money transfer giant MoneyGram and Ripple, the blockchain firm associated with the XRP token.
It is worth noting that Ripple and MoneyGram were previously in a partnership in 2019, in which Ripple invested $50 million in MoneyGram. This investment gave Ripple about 10% ownership of MoneyGram’s outstanding common stock at the time. As part of the agreement, MoneyGram used Ripple’s technology, formerly known as xRapid and now referred to as On-Demand Liquidity (ODL), to send money using XRP as a bridge currency. According to a filing with the SEC, MoneyGram generated up to $113 million from this strategic partnership over two quarters in the 2019 fiscal year.
However, in 2021, MoneyGram suspended the partnership indefinitely, which was suspected to be a result of the SEC lawsuit against Ripple. To clarify the situation, Ripple assured its community members that the contract with MoneyGram was still in place and not limited to their use of ODL.
Now that Ripple XRP has had its legal status cleared by a federal judge, there is anticipation that MoneyGram will reinstate the partnership with Ripple. This reinstatement could serve as a significant boost for XRP, which, like many other altcoins, is currently facing a broad sluggish momentum in the market.
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The broader cryptocurrency ecosystem has experienced turbulence in the past week, leading to a downward trend in token prices and crashing market capitalizations. However, there is a glimpse of hope suggesting potential recovery. On-chain analytics firm Santiment claimed that Ripple’s XRP, along with Litecoin (LTC) and Stellar (XLM), are leading the slight market recovery that began this week. Despite being down 1.46%, XRP is currently trading at $0.5178. With the relisting on multiple exchanges and the potential reinstatement of strategic partnerships like MoneyGram, there is speculation that the price of XRP could reach new levels, potentially up to $5 in the long term.
In conclusion, Ripple and its native token XRP have experienced a shift in status and sentiment since the positive ruling against the SEC. Old partners like MoneyGram are now expected to reinstate their partnership with Ripple, which could provide a significant boost to XRP’s price in the market. Despite the recent turbulence in the cryptocurrency market, there is hope for potential recovery, and XRP’s relisting on exchanges and reinstatement of partnerships could contribute to its long-term growth.
