Cryptocurrency XRP (Ripple) unexpectedly jumped 40% on Saturday, growth continued on Sunday.
At the end of the week, the token is adding more than 60%. XRP has once again become the fourth-largest crypto asset by market cap.
It looks like amateur traders have started to accelerate another market asset.
The XRP rate on Saturday exceeded the $ 0.50 mark – above this level, the token has not been traded since December 22 – the day when the US Securities and Exchange Commission (SEC) sued Ripple.
And although nothing happened in the SEC case against Ripple that would increase the company’s chances of winning, the latest events have one plausible explanation, writes ttrcoin.
Telegram has organized a group of over 60 thousand members who set themselves the task of buying and holding XRP. The fruits of their activities can already be seen on the graphs.
Previously, something similar happened with GameStop, which was perceived with skepticism by professional market participants. A group of traders from Reddit decided to buy up its shares, for which a large volume of sales was opened, which caused their cascading closure or the so-called short squeeze.
On Friday, Ripple filed a formal 93-page response to a lawsuit by the US Securities and Exchange Commission (SEC), accusing it of selling more than $ 1.3 billion in unlisted securities.
According to the defendant’s lawyers, “XRP’s functionality and liquidity are completely incompatible with securities regulation.”
The company recalls that XRP was recognized as a convertible virtual currency available for sale and circulation in the secondary market following its 2015 litigation with the Department of Justice and the US Financial Crimes Enforcement Network.
Ripple is in talks with central banks to use the XRP Ledger as the basis for national digital currencies (CBDCs), RippleNet general manager Ashish Birla said at the end of the week.
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