The past week brings a huge amount of confusion around Ripple and its native token XRP. The SEC has decided to appeal Judge Torres’ ruling. The Gemini exchange lists XRP, which momentarily reaches an alarming price of $50. Meanwhile, the number of XRP transactions significantly exceeds the values listed by Bitcoin and Ethereum.
SEC on the counteroffensive
In the ongoing battle between the SEC and Ripple Labs surrounding XRP’s status as a security, the SEC has taken another significant step. Following a court verdict that ruled in part that XRP does not constitute a security, the SEC has requested a temporary stay of the appeal. Differences in legal interpretation prompted the Commission to make this particular move. The request formally asks for permission to appeal to a higher court, leaving key legal issues in abeyance until final clarification. Meanwhile, tensions within the sector are mounting, as a result of the complicated division of opinion over the future fate of XRP.
The occurrence of this proposal has caused some confusion, negatively affecting XRP’s short-term price action. Nevertheless, investors were expecting a reaction from the Commission, and as a result, it can be expected that the event has long been embedded in the price of the token, which at the time of writing this content is oscillating around $0.63.
Gemini re-lists XRP causing skyrocketing price jump
The price of XRP on the Gemini exchange rose sharply to $50. This was the result of a short-lived lack of liquidity, linked to the token’s re-listing. The event has spawned speculation – perhaps a large market order was mistakenly executed at an exorbitant price. There is also a suggestion of potential fraud, where the seller deliberately set the price at $50 and the buyer inadvertently took it, resulting in an unusual transaction. The jump to this alarming value lasted a very short time, and the value of XRP after barely a moment equaled the prices seen on other exchanges.
Dynamic increase in XRP activity
After a decline in activity in July, August brought a revival of transactions on Ripple Ledger. Since the beginning of the month, according to BitInfoCharts, more than one million transactions have been listed daily.
An exceptionally successful day for Ripple took place on August 2, when the number of transactions exceeded 1.3 million, while Ethereum and Bitcoin reached 1.04 million and 390,000, respectively.
This is an important achievement after the July drop in the value of XRP. Since then, the blockchain has recorded steady growth. Current data show that on Friday, August 11 alone, the XRP network conducted more than 1.252 million transactions, more than double the July 29 low (612,000).