ChatGPT’s prediction – XRP’s price might hit $10 in 2024
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
The crypto sector secured a landmark victory in its battle with regulators after a court ruled that Ripple Labs did not violate federal securities law by issuing its Ripple [XRP] token on public exchanges.
In doing so, it weakened most of the Securities and Exchange Commission’s arguments.
Even though the majority of Ripple’s legal problems have been resolved, the company remains cautious as it goes forward.
Ripple’s IPO dilemma
Ripple CEO Brad Garlinghouse recently disclosed that the company is considering IPO possibilities outside the United States, citing a strained relationship with the Securities and Exchange Commission (SEC).
Garlinghouse raised concerns about the Securities and Exchange Commission’s approach while speaking at the World Economic Forum in Davos, Switzerland.
Despite Ripple’s desire to go public, the company has temporarily delayed its IPO ambitions due to an ongoing legal dispute with the SEC.
Garlinghouse stated that the company is considering an IPO outside the United States due to the regulator’s “hostile” operating environment. He said,
“We have looked at other jurisdictions that have clear rules of the road.”
However, he also noted that Ripple does not require an urgent IPO for its development. The CEO added,
“Honestly, a lot of people go public because they need to raise capital. Ripple’s not really in a place where we need to raise capital.”
Understanding XRP and the Ripple Labs
XRP is a cryptocurrency that Ripple Labs uses to conduct transactions on its network.
While Ripple is a centralized fintech company that began as RipplePay in 2004, it was later co-founded by Chris Larsen and Jed McCaleb in 2012 with the vision of creating a faster and more secure way of doing transactions around the world.
Although the two have been used interchangeably, Ripple is a technology company whereas XRP is its open-source digital asset.
The crypto operates on its blockchain known as the XRP ledger (XRPL) where transactions are facilitated by RTXP or the Ripple transaction protocol.
It is pre-mined, unlike a lot of other cryptocurrencies, with a maximum token supply of 100 billion. The main purpose of the crypto is to serve as a settlement layer that aids in transactions with the Ripple network.
It has been, however, traded as a cryptocurrency that is available on various exchanges including options, swap exchanges, spot exchanges, futures, custodian and non-custodian exchanges.
XRP vs. SEC: The clash
The United States SEC filed a lawsuit against Ripple Labs in 2020 for selling XRP as an “unlicensed security,” claiming that the distribution of $1.3 billion worth of the crypto to its stakeholders violated the law.
The major bone of contention here was whether XRP was a security and, therefore, whether it was a share in Ripple or if it was a cryptocurrency like Bitcoin.
Ripple has been at loggerheads with the SEC for a few years now. The SEC claimed that Ripple’s sale of XRP to investors was to fund itself and relied on the 1946 SEC judgment of SEC vs. W.J. Howey Co. to make its case.
In doing so, the agency stated that whether an investor has control over profit is a deciding factor if an investment contract is a security or not. Ripple Labs, on the other hand, argued that the SEC had neither notified nor warned the organization.
After 3 years of deliberation, the case was finally ruled on in July 2023. The court found that XRP was NOT a security in itself.
The SEC was also denied the request for an interlocutory appeal and, later, had to drop its securities violation charges against Ripple and XRP.
The SEC got authority over cryptocurrency sales to institutions, whereas crypto-transactions on exchanges would not be treated as securities transactions.
What does ChatGPT have to say?
While ChatGPT is not equipped with the latest information and does not make any future predictions, I used a jailbreak and asked it about what lies in the future for XRP, keeping in perspective the current scenario.
When asked what the future looks like for XRP, given the favorable court ruling, the bot responded by stating that the crypto could see short-term momentum as investor confidence increases.
This could, however, slow down a bit in the long term as the market is affected by various factors such as adoption, sentiment, and regulatory clarity.
The bot also stated that while positive developments on the legal front are a positive sign, it is also crucial to keep track of other developments and potential regulatory changes that could influence the price of XRP going forward.
When I gave ChatGPT some context with Bitcoin and Ethereum’s press time price and asked what would be the price of XRP in the first quarter of 2024, the bot made a bold claim that the crypto would hit $10 per token.
It called this high the “comeback of the century,” but also warned that its predictions are just speculative, and the actual prices may vary significantly.
Finally, I asked if the crypto would surpass its ATH in 2024. The bot gave me a confident answer, stating that XRP will “blow past” its ATH in 2024 and hit unprecedented heights, leaving its previous all-time high in the dust.
Let’s look at XRP’s current price movements
The Ripple (XRP) price has struggled for the third month in a row, following a staggering 50% gain from mid-October to November 6. At press time, XRP traded at $0.5457 after losing 4.8% in a week.
The MACD depicted multiple red histograms below the half-line, to indicate a strong momentum favoring the sellers. This sentiment was also reflected by the On Balance Volume as it traversed downwards and stood in bearish territory.
The present conditions point to a bright future for XRP, particularly given the prospect of an upcoming bull market.
Is your portfolio green? Check out the XRP Profit Calculator
The anticipated settlement of the ongoing case may put XRP in a better light for potential investors. There may be a rise in interest in XRP soon, resulting in a fresh upswing.
However, the world of cryptocurrencies is renowned for its violent swings and volatility, and ChatGPT is not a faultless tool, so you should do your own research before buying XRP tokens.