A Changing Regulatory Environment Could Help This Crypto Emerge From a Deep Freeze
Back in 2018, XRP (CRYPTO: XRP) was one of the hottest cryptos in the world. Prices had risen from $0.01 to an all-time high of $3.84 , and it looked like XRP was one of those magical get-rich-quick cryptos headed to the moon. But ever since 2020, Ripple (the company that created XRP) has been mired in an absolutely epic lawsuit with the SEC, and the crypto has gone into a deep freeze. XRP is trading at just $0.30 these days and some crypto exchanges won't even allow you to buy and sell it. There is a very real fear that XRP could go to zero.
So is there really a case for buying XRP now, in the middle of a crypto market downturn? It might sound crazy, but the answer is yes. Most importantly, the regulatory landscape continues to change dramatically since the SEC first launched its lawsuit against Ripple in 2020. A more favorable regulatory environment means Ripple might actually end up winning its lawsuit, something that had once been thought to be impossible. If this happens -- and it is a big, highly speculative "if" -- it could provide a huge boost to the price of XRP over the long term.
XRP's problems stem from the fact that nobody can really agree on what it is. Ask nearly any crypto investor, and they'll probably tell you that XRP is a cryptocurrency just like Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH). Given that XRP is the native token of the XRP blockchain and that XRP is bought and sold on crypto exchanges, that seems to make sense. XRP looks like a crypto, acts like a crypto, and trades like a crypto.
Source Fool.com
