Ripple [XRP] continues to sink amidst lawsuit and SEC rumors

Amidst a class-action lawsuit and allegations that it might be declared a security, Ripple’s XRP continues its gradual sink in value, with a 1.64% drop during this week. It went up from $0.81 at the beginning of the month, with a sudden spike to $0.92 on May 4th. It continued to oscillate around the $0.90 mark from May 4th to May 6th, then gradually dropping to the current price of $0.80.

7-day price graph for XRP | Source: CoinMarketCap

This comes after a class-action lawsuit was filed against Ripple Labs Inc. last week. The lawsuit in question was filed by an investor in Ripple known as Ryan Coffey. Many fear that this legal development may force the SEC’s hand in declaring Ripple a security.

Over FUD and FOMO, Ripple’s price took a hit, causing an apparent decline in the price over the weekend, from the low $0.90s all the way down to the low $0.80s. This added up to its position as the fourth least profitable coin this week among the top 10.

It still holds the #3 position by market cap, with an overall market cap of $31 billion. Its closest competitor is Bitcoin Cash [BCH], with a comfortable $4 billion difference.

Ripple is known for its wide range of services focused towards moving money worldwide as fast as information moves today. Its products xCurrent, xRapid and xVia have attracted many lucrative clients such as Santander UK and Standard Chartered.

XRP’s run last month fueled rumors that it would break the $1 mark again, which would have been a first since February of this year. It came close, with the coin hitting $0.96 on April 25th, up from $0.49 on April 8th. It garnered a 163% gain last month, with a flurry of announcements and interviews from significant authorities in the space. Prominent among these was the formation of 5 new partnerships through xVia.

In light of the recent lawsuit on Ripple, a statement from Kyle Samani, Managing Partner at MultiCoinCap stood out. He said:

“Suing Ripple is like suing the casino”

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