The current lawsuit of Ripple Labs by the Securities and Exchange Commission (SEC) of the US has been making international headlines. Ripple Labs co-founders have been charged with a penalty to move around unregistered securities worth $1.3 billion. Ripple is a global provider of financial settlement solutions established in 2012. SBI is a Japan-based global financial services company that is one of the largest companies to partner with Ripple.
In the aftermath of the Ripple lawsuit, when its popularity has taken a major hit, the Japanese conglomerate continues to provide momentum and support to its partner company. According to an official statement issued by SBI Holdings, it is going to award its shareholders in XRP amounting to $ 22.92 or 2500 YEN each. This reward system has been in place since August 2019. However, the current shareholders have a period till March 30th, 2021, to qualify and opt for this incentive.
Can XRP Recover from the Damages of SEC lawsuit?
SBI Holdings and Ripple Labs entered into a big venture named SBI Ripple Asia in 2016. With the help of this organization, Ripple would be able to strengthen its position in Asian markets. SBI Ripple Asia is going to work in big markets like Japan, China, Taiwan, Korea, and other ASEAN countries. As per careful estimates of the 2015 World Payment Report, non-cash payments had a volume of $45 billion in 2013, South Korea, China, and Japan collectively.
In the aftermath of the SEC lawsuit, Ripple’s native cryptocurrency XRP fell 40% within 40 hours span. Most analysts fear that it would be impossible to recover from the damages of this lawsuit. XRP coin had managed to score a ranking of the 4th largest cryptocurrency in the world before this lawsuit. Its year-to-date YTD performance indicated an increase of 202.2% in 2020. Despite all odds, XRP is still showing character and managed to bounce back to $0.44 again.
What is the Internet of Value, and how is it connected to SBI and Ripple?
SBI Holdings has a market cap of $28 billion. Ripple and SBI Holdings have been working on a revolutionary new technology named the Internet of Value (IoV). The idea behind this project is that users would be able to transfer any commodity of value like fiat currency, assets, stocks, securities, intellectual property rights, discoveries, blueprints, ownership contracts, and even electing votes via this online space.
The technology is based on the fundamentals of the blockchain and Distributed Ledger Technology (DLT). In many ways, it is an attempt to eliminate a few drawbacks to the DLT and blockchain technology that is used by Bitcoin. There is an introduction of the Proof of Work protocol that would increase scalability, decrease malicious attacks with centralization, and eliminate the environmental and economic constraints caused by mining equipment. The SBI Ripple Asia project has the potential to revolutionize the future of financial transactions in future.