Recently, a popular crypto analyst sparked a debate in the XRP community by suggesting that the digital asset may never exceed its all-time high (which was around $3.40 and reached on 7 January 2018). The pseudonymous analyst, known as “The Wolf,” shared his thoughts on Twitter, triggering a flurry of responses from the crypto community.
The Wolf, who has a significant following in the crypto space, stated that he doesn’t believe XRP will ever break its all-time high. This statement comes despite last week’s landmark ruling by Judge Torres.
To recap, the lawsuit initiated by the SEC in December 2020 alleged that Ripple Labs and its executives Bradley Garlinghouse and Christian A. Larsen unlawfully offered and sold securities, contravening Section 5 of the Securities Act of 1933. After a series of hearings and deliberations, Judge Analisa Torres, a district judge at the United States District Court for the Southern District of New York, gave her ruling on July 13, 2023.
Here is what Judge Torres said about the XRP token:
“XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.“
According to The Wolf, XRP supporters often hold the belief that “this time, it’s different.” However, he cautions that Ripple Foundation (but presumably he means Ripple Labs) has a pattern of releasing large quantities of tokens into the market, a move expected to recur in the forthcoming two weeks. The Wolf attributes this influx of tokens to inflation, a factor he believes has consistently hindered XRP from reaching a new all-time high. He advises those unfamiliar with the concept to research ‘”inflation” to better comprehend its influence on cryptocurrency values.
The Wolf’s assertion has been met with mixed reactions. Some members of the crypto community agree with his viewpoint, citing the ongoing legal issues and the market’s overall volatility. Others, however, remain optimistic about XRP’s future, pointing to Ripple’s recent partial legal victory and the potential for future growth.
While the debate continues, it’s clear that the future of XRP remains uncertain. The digital asset’s performance will likely continue to be influenced by a variety of factors, including the outcome of Ripple’s ongoing legal issues, market trends, and investor sentiment.
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