The lawsuit between Ripple Labs and the US Securities and Exchange Commission began in 2020 and is currently in the trial phase. There’s no telling when it might end or who the winner would be, although Ripple had a few wins before the trial began.
The main purpose of the court is to determine whether or not XRP should be classified as a security, and therefore whether Ripple (the company behind it) conducted an unregistered sale of securities when distributing its tokens to the investors.
This is a big decision that will likely affect the legal status of XRP in the eyes of regulators, and therefore it is entirely possible that many investors will take this into account.
We decided to ask ChatGPT what would have happened to the price of XRP if this lawsuit had never happened.
Would the price of XRP be higher?
ChatGPT acknowledges that this is a speculative issue and mentions that there are several factors to consider before determining whether the price would have been higher.
First, market sentiment. The AI says the demand has created significant uncertainty and negatively affected investor confidence. Without it, market sentiment would likely have been more positive.
Also, without legal issues, Ripple would have been able to establish more partnerships with companies and financial institutions, leading to greater adoption.
Many exchanges also removed XRP or restricted it from trading in the days when the demand first occurred. Although many of them have since put it back, this definitely hurt the accessibility and trading volumes of XRP.
The absence of the lawsuit would provide more regulatory clarity for XRP, making it a more attractive investment institution wary of legal uncertainties.
The chatbot concludes:
To quantify this, one could look at historical data from periods before the demand and compare it to the performance of other major cryptocurrencies. However, any estimate remains speculative. In general, experts believe that without the demand, the price of XRP would likely be significantly higher, reflecting its potential and market adoption without the legal overreach.
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