Why did the price of XRP rise today? Cryptocurrency scrgruppen

The price of XRP (XRP) rose today following news that Federal District Judge Analisa Torres of the Southern District of New York ruled against the US Securities and Exchange Commission’s (SEC) claim that XRP is a security.

XRP immediately reached $0.55, but later gave up part of the gains on October 4.

4-hour XRP token price in USD. source: TradingView

The court’s positive decision for Ripple has drawn mixed opinions from experts

In the court’s October 3 order, Judge Torres claimed it did not require an order “involving an overriding question of law,” which is a prerequisite for granting an interlocutory appeal. This decision sparked controversy among cryptocurrency law experts in the community.

Bill Hughes, an attorney at Blockchain Consensus, told Cointelegraph that the SEC’s appeal denial was somewhat expected, since appeals of this type are not unusual during this part of the trial.

Likewise, Gabriel Shapiro, general counsel at Delphi Labs, warned XRP bulls to moderate their enthusiasm, as the SEC could still appeal the case later. This means the regulator needs to wait until the end of the trial, which is scheduled to start on April 23, 2024.

Ripple has received approval for a digital payments license in Singapore

In a statement on October 4, Ripple announced that its local entity, Ripple Markets Asia Pacific, had obtained a “Master Payment Institution (MPI) license” for digital payment token services in Singapore. The decision will allow the company to continue operations in the city-state after receiving initial approval from the Monetary Authority of Singapore (MAS) in June.

According to Ripple, the license allows its subsidiary to scale the offering of its On-Demand Liquidity (ODL) service, an institutional solution that uses XRP as a bridge between two currencies. This eliminates the need to pre-fund destination accounts and reduces operating costs.

Ripple has been selected as a contender for a CBDC pilot in Georgia

On September 28, the National Bank of Georgia (NBG) announced that nine companies, including Ripple, will participate in the search for a central bank digital currency (CBDC). The project, known as Digital Lari, or GEL, aims to be programmable and support asset tokenization.

The Eastern European country, with a population of 3.7 million, intends to launch a limited-access live sandbox, where only one of the participating companies will be selected to move forward. The National Central Bank announced that it is considering issuing a central bank digital currency in May 2021, without providing a timetable for this.

There was a modest impact on demand for XRP derivatives

Demand for XRP futures did not provide meaningful changes, as open interest, which measures the overall concept of contracts still in effect, rose by 13% compared to the previous day. Furthermore, the current open interest of $590 million is down from $794 million from the previous month.

Funding Weighted Interest Rate for XRP Futures, 8 hours. Source: Coinglas

Note that the funding rate for XRP futures has always remained below 0.01% every 8 hours, which equates to 0.20% per week. Positive values ​​indicate that long positions cover the cost of leverage, but a funding rate of less than 1% per week is generally not considered expensive.

Given the inability to cross the $0.54 mark, which would have been a six-week high, and the lack of demand for leverage through futures, it is reasonable to doubt whether the recent influx of positive news has convinced investors that XRP is about to enter the market. . Bull race.

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.

Cryptocurrency scrgruppen

Related Articles

Back to top button