Matt Hamilton, one of Ripple’s former directors, made a statement recently. Ripple’s statements that XRP assets in the escrow wallet could be burned created controversy. As you know, Ripple’s lawsuit with the SEC has been going on since 2020 and has not yet reached a conclusion. Today, we will examine possible XRP burns, the latest point in the SEC case, and price analysis.
Let’s talk about Ripple first. As you know, Ripple is a communication protocol used to transmit money over the internet. It was developed and released in 2012 by the US-based company Ripple Labs. It is designed to enable banks, over-the-counter markets, digital asset exchanges and large companies to conduct secure and low-fee transactions using blockchain technology.
This legal process, known as the XRP-SEC Litigation, started in 2020. The U.S. Securities and Exchange Commission SEC has accused Ripple Labs of unfairly profiting by offering unregistered securities services. It is certain that there will be a big explosion when this legal process, known as the first case in the crypto money ecosystem, is completed. The class action lawsuit, in which documents were collected and the parties multiplied, was last postponed from August 26, 2022 to November 18, 2022. In March we left behind, it was stated in the markets that this case would end in favor of Ripple in April. With this sensation, the XRP price started to accelerate with the effect of the rally in Bitcoin. The case was not concluded in April, but experts predict that the outcome of the Ripple case will end in 2023 for now. Stuart Alderoty, who is also Ripple Labs General Counsel, also pointed to the year 2023 for the outcome of the case. Ripple, the 6th largest cryptocurrency on Coinmarketcap, is expected to be the winner as a result of this lawsuit.
In the latest news headline, Ripple’s Former Developer Director Matt Hamilton stated that Ripple could burn all assets stored in escrow wallets. Hamilton, who has worked at Ripple for a long time, also made comments on the current case while making this statement. It can be decided to deactivate for scheduled accounts after the entrusted assets are released. These released assets can be made inaccessible to anyone, including Ripple. There are also parties who are considering a vote to burn the XRPs entrusted to the validators in December 2020. If this situation occurs, it may be certain that the SEC will burn the tokens entrusted to Ripple. In general, the ideas of burning assets in the name of the growth of the XRP ecosystem are defended in the market.
According to the data in Ripple’s registry, it is seen that more than 11 million Ripple has been burned to date. As you know, incineration is used by a network or project to create a deflationary model for an asset. A dwindling supply, the price is expected to rise as demand rises. Ripple’s CTO, David Schwartz, confirmed that it is designed to increase the value of the asset on the XRP network. He added that Ripple burns, which have a total supply of 100 billion, will continue.
XRP’s market cap has lost over 0.70% in the last 24-hour time frame. It is currently around 90% below its all-time high with the $0.42 band it is priced at. It hit recent all-time highs at $0.58 in March, but dropped about 28% from there. Up movements and tests seem likely as there is no current downtrend. Even testing the $0.38 band may lead to support of its current rise. For XRP to support its potential increase, we need the litigation with the SEC to be settled. Or rumors that it will result may trigger this rise. With the decisions to be made in favor of Ripple, an increase will be observed in the near term and will allow the price of XRP to rise above $ 0.60. Watching below its 200 and 50-day moving average, XRP’s break of the $0.43 resistance may trigger possible rises. However, pricing below $0.40 may harbor risks. It is useful to remember that these points may return to us as buying opportunities in the medium term.
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