Ripple Moves to Strengthen Investor’s Trust, Adjusts XRP Institutional Sales 

Ripple Moves to Strengthen Investor’s Trust, Adjusts XRP Institutional Sales 

Ahead of an upcoming court decision, blockchain-based payment technology Ripple, which is engaged in a legal dispute with the Securities and Exchange Commission (SEC), has modified its institutional XRP sales strategy.

In spite of a recent upsurge, XRP’s performance has lagged behind that of other significant cryptocurrencies, underscoring the necessity for Ripple to make calculated changes to its institutional XRP sales strategy. 

Recall, in December 2020, the SEC they filed a complaint against Ripple, claiming that the company had engaged in an unregistered securities offering by selling XRP tokens. The claims have been sharply refuted by Ripple, who maintains that XRP belongs in the category of digital currency as opposed to securities.

Ripple Names Adjustments to Fit the Latest Judicial Process 

Ripple has strategically modified its institutional XRP sales strategy in reaction to the current judicial processes and market conditions. The corporation wants to address regulatory concerns while also satisfying institutional investors’ aspirations in what’s considered a tricky balance.

Ripple aims to preserve liquidity and stability in the XRP market while reducing the risks and uncertainties related to SEC litigation by optimizing its sales strategy. Commenting on the topic, Mutuma Maxwell from CryptoPolitan said that a  successful resolution in the legal dispute with the SEC may greatly increase investor trust.

He also insisted that  it has open the door for XRP and Ripple’s payment services to be used more widely. He also added that a negative decision can have a significant impact on XRP’s future and Ripple’s business strategy.

Investigations reveal that Ripple has continued to fund Research and Development (R&D) projects with the goal of improving the XRP Ledger’s scalability, effectiveness, and security. To further solidify its standing as a major force in the blockchain and fintech industries, Ripple is also actively collaborating and partnering with banks and payment processors around the globe.

Ripple Records Major Revival, Records $600 Million Daily Transaction

While the SEC lawsuit plays out, Ripple is committed to furthering its goal of using blockchain technology’s revolutionary potential to enable smooth, safe, and effective cross-border payments.

According to the fourth quarter report published by Ripple, there has been a revival in the trading volume of XRP, which has an average trading volume of $600 million per day.

But the XRP has witnessed a major drop amid this positive performance, gaining 19.5% in profit in the fourth quarter of 2023. This development is compared to ETH’s 36.5% and BTC’s 56.8%  increases. 

As part of Ripple’s modified sales model, which is also intended to blend into some newly introduced legal terms, the company has a model that requires XRP institutional sales which is designed to be as fast as possible through the use of On-Demand Liquidity (ODL) transactions, as against the long-term investments. 

Ripple Revealed its Precautionary Plans, to Leverage the ODL

Ripple has continued to attract attention to its legal tussle with the Security and Exchange Commission (SEC) amid these ongoing market dynamics. The unfolding development is said to be the implication of Judge Analisa Torres’ judgement that named XRP a non-security.

Subsequent report had it that the judge had also declared previous institutional sales by Ripple illegal, insisting that they violated securities and financial laws. In response to the enveloping legal changes, Ripple has revealed its precautionary moves to approach its institutional sales.

A recent record from the SEC shows that Ripple has directly sold XRP to some institutional buyers using special contracts. This particular transaction, worth over $729 million in XRP, was considered unlawful by the court because they offered buyers a hope of profit, which is part of Ripple’s effort to augment the value of XRP.

This move by Ripple has been explained as its own way of avoiding the classifications of securities through the elimination of expectations from XRP holders. Meanwhile, the relevance of this new model goes beyond complying with the commission’s regulations.

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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