XRP Experiences Limited Growth as Crypto Market Sees Significant Gains
The crypto market is currently experiencing a bullish trend, with Bitcoin nearing $90,000. While many altcoins are rising, Ripple's XRP has not followed suit, causing frustration among community members.
XRP has increased only 30% over the past week, significantly lagging behind Dogecoin, which surged over 150% in the same period, including a 50% increase in just one day. As a result, Dogecoin has surpassed XRP in the rankings of top cryptocurrencies.
Community Criticism Intensifies Over Ripple’s Strategy
The lackluster performance of XRP has prompted criticism from some users. One commenter suggested that Ripple should adopt promotional strategies similar to those used by Cardano CEO Charles Hoskinson. This comment came after Ripple CTO David Schwartz discussed the legal implications of investment contracts, expressing hope that the Supreme Court would clarify the distinction between true investment contracts and ordinary purchases.
In response to Schwartz's post, another commentator accused the Ripple team, including Schwartz, of profiting at the expense of XRP holders and claimed that no profits have been realized from holding XRP for seven years. Schwartz countered this claim by stating that his XRP holdings have experienced similar fluctuations as others, asserting that any efforts to enhance XRP's value would benefit all holders equally.
Another community member expressed confusion over XRP's stagnant position despite its potential, claiming to have been "rug-pulled" twice and describing their investment experience as painful.
Legal Insights on Ripple's Approach and Future Prospects
Legal expert Bill Morgan noted that the court determined Ripple’s programmatic sales of XRP did not qualify as an investment contract under the Howey Test, primarily because Ripple did not actively promote XRP to retail investors. This lack of promotion contributed to the court's ruling that XRP is not a security in those instances.
Morgan expressed skepticism about Ripple promoting XRP to retail investors in the near future, as such actions could jeopardize the court's ruling while legal challenges persist.
Despite recent stagnation, XRP has shown some upward movement, with a 30.57% increase over the last eight days and an additional 14% gain in the last 24 hours. However, many in the community remain cautious, awaiting a clear strategy from Ripple to leverage the broader crypto market rally.