Ripple labs the company run by its CEO Brad Garlinghouse according to the latest news seems to be in trouble right now after receiving the third court summons within three months.
What investors are asking themselves now is that what can happen to XRP, the cryptocurrency promoted by the Ripple labs company, following these events that see the company accused of fraud. According to the latest market movements, it was seen that while Bitcoin and Altcoin increased in value, Ripple underperformed the market, probably these legal events led investors to avoid operating in XRP.
As we have written several times, Ripple has signed partnerships with the most important financial institutions and payment services in the world, which makes it a very good project, but when we operate markets such as cryptocurrencies, where it is possible to sell and buy instantly it could happen, if the company could not get out well from these accusations, that XRP becomes the object of a panic selling, a situation in which, which would push all the millions of investors who bought XRP to get rid as soon as possible of cryptocurrency. This would lead to a collapse in the price of XRP that would involve the entire cryptocurrency market, given that XRP is the third most important for capitalization. On the basis of what we can see at the moment this does not seem to be the case but, since it is not possible to know the developments of the ongoing lawsuits and any further judgments in court we consider it appropriate to make the aforementioned hypothesis that we do not wish to succeed.
Since there is a strong correlation between bitcoin and cryptocurrency altcoin, recently the managing director of Ripple Brad Garlinghouse has deemed it appropriate to declare that it is going to fade, “when people will know each different case of use for each project the correlation will go in the end it has gradually diminished “, he said. In our opinion, even in the worst case in which the judiciary will express theyself against Ripple labs, cryptocurrency markets will follow Bitcoin’s movements and will continue to grow over the long term