XRP Price Rises By 33% Amid Binance-CFTC Debacle: Is It A Good Investment?
Ripple’s XRP has been making headlines with its impressive resilience in the face of market volatility. Despite the recent lawsuit by the CFTC against the popular Binance crypto exchange, XRP has remained unaffected, even showing a remarkable increase of over 4% in the last 24 hours. Over the past week, the coin has soared by 33%, outperforming other cryptocurrencies. This begs the question: could XRP be a safer bet for investors looking for stability in a turbulent market?
Binance under fire: What Are The Allegations?
The U.S. Commodity Futures Trading Commission (CFTC) sued crypto exchange Binance and founder Changpeng Zhao Monday on allegations the company knowingly offered unregistered crypto derivatives products in the U.S. against federal law.
Also Read: CFTC Cracks Down On Binance, $850 Million Outflow Recorded – Coinpedia Fintech News
The lawsuit, filed in the United States District Court for the Northern District of Illinois on March 27, alleged that Binance operated a derivatives trading operation in the U.S., offering trades for cryptocurrencies including bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), tether (USDT) and Binance USD (BUSD), which the suit referred to as commodities.
The CFTC is charging Binance with violating laws around offering futures transactions, “illegal off-exchange commodity options,” failing to register as a futures commissions merchant, designated contract market or swap execution facility, poorly supervising its business, not implementing know-your-customer or anti-money laundering processes and having a poor anti-evasion program.
XRP Price Stands Strong
The XRP Ledger network has seen some fundamental upgrades in the past few months that may have contributed to the rise in XRP’s price. Additionally, some in the community speculate that the classification of major tokens as a commodity in the CFTC filing against Binance could mean XRP tokens were also commodities instead of security, as alleged by the U.S. Securities and Exchange Commission (SEC) in the ongoing Ripple v. SEC case.
Related: XRP Defies Market Chaos With Massive Pump
Moreover, XRP has recently experienced a significant increase in its social dominance. The cryptocurrency’s social presence has reached its highest level in a year, following a substantial price surge above $0.49, marking the first time since November 6, 2022, that XRP has achieved this feat.
The heightened social attention has significant implications for XRP’s market performance and could lead to more volatile price movements driven by increased trading volume and mainstream interest. At the time of writing, XRP is worth $0.5.
Do you think XRP’s resistance to market volatility is a sign of its long-term potential?