Ripple may be dealing with lawsuits and it may not have been considered by the SEC as a commodity, but it is definitely on a roll. It started solving its problem by hiring key personalities that will help decentralize Ripple. Despite the legal trouble, it has been on a roll. There’s an increase valuation of XRP and it looks like that the team is doing something correctly.
For one, there is the presence of media personalities that promoted Ripple. The likes of Ellen Degeneres and Ashton Kutcher played a great role in promoting Ripple. Also, there are the partnerships that Ripple developed over the years. Western Union, for instance, has tried Ripple. And though Western Union mentioned that Ripple didn’t help them lessen their cost, Ripple team insists that it’s due to the small number of transactions that Western Union tried using their product.
Also, you have to take into consideration the rumor that Coinbase is about to add Ripple to their trading platform. If this happens, it is going to be included with the likes of Bitcoin and Ethereum. And since Coinbase is the biggest cryptocurrency exchange today, this can be favorable to the third largest cryptocurrency based on market capitalization.
Is It a Security or a Commodity?
If you will look at the lawsuits, the decision might as well seal the deal with Ripple. However, Samsung starts to accept crypto payments and Ripple is included in the number of cryptocurrencies accepted by the tech giant. Bitcoin, Litecoin, Ethereum, Ripple, Steam, and Dash are also among the other cryptocurrencies that are accepted by the company.
Now, this is a good thing for Ripple. If it is a security, then most likely, Samsung will not even consider having Ripple. Samsung may have seen something in Ripple that doesn’t raise any red flags.
The Howey Test is the ultimate litmus test in order to declare something as a security. And since people who invested in XRP have no stake in Ripple, this could actually mean that it is a commodity and not a security. And also, XRP has a utility. This makes it different compared to traditional stocks.
Bitcoin’s Rise in Value
Bitcoin’s value is currently on the rise. Bitcoin is currently priced near $7,500. There was even a time when Bitcoin was only selling below $6,000 last month. Apart from the SEC, it is important to note that crypto regulatory changes happening in different parts of the world is good not only for Bitcoin but for the entire industry.
There are even countries that are having a change of heart when it comes to crypto regulations. Switzerland, for instance, is trying to regain the confidence of crypto companies. You also have South Korea that has been more open to implementing G20’s unified crypto regulatory framework.
But does it mean that Ripple is going to be considered a commodity? There are some experts who think of Ripple as a security. And for this reason, the lawsuits will play a crucial role in Ripple to be considered or not to be considered as a security.