It seems that XRP is currently in demand by whales, as the largest fish in the crypto ocean are currently accumulating the token at a rapid rate. In a span of 3 weeks, the whales in question collected 52 million XRP tokens. Those 52 million XRP carry a total value of about $22.9 million.
Why do whales do this?
The most logical explanation for this is that they naturally believe in the future of XRP. These entities may have enormous confidence in the outcome of the lawsuit between Ripple and the US Securities and Exchange Commission (SEC).
That lawsuit has been going on since 2020 and revolves around the question of whether XRP qualifies as a security for US law. Should that be the case, there is a good chance that XRP will disappear from all exchanges.
As a crypto exchange, you are not allowed to list securities on your platform without having the correct permit. We speak of a security if a certain profit expectation is attached to a financial instrument, which depends on the commitment of the issuing party.
Should the court rule that XRP qualifies as a security, the party for the token is likely over. If XRP disappears from the exchanges, then of course there will be little left of the token’s value. But the whales seem to have a lot of faith in the lawsuit.
Decent price performance
So far, the year 2023 is going pretty well for XRP, with a price gain of 39.48 percent. This means that it cannot yet match the performance of Bitcoin, but the coin is certainly not doing badly. The further course of this year will probably largely depend on the lawsuit.
The court is expected to rule on the issue sometime in 2023. That would be a welcome piece of certainty for investors, because in principle they have been in a kind of limbo since 2020.
Ultimately, the SEC is there to protect the investor, so that is not really a desirable situation. It would be good for all parties in that respect if there was clarity soon and then of course we hope that XRP will be able to settle the matter in its favor.