Expansion in China, US District Court Denies Plea: Can Ripple(XRP) Survive the Crash?
According to a Ripple executive, the distributed payments service provider has plans of expanding operations in China.
To say whether this move would actually help Ripple’s digital currency, XRP, or not is difficult since while the banks love the distributed payments service provider, they don’t have much interest in the cryptocurrency.
Jeremy Light, Ripple’s Vice President of strategic accounts in Europe said that the company is looking forward to expanding in China to increase the usage of its distributed ledger platform. In a telephonic interview with CNBC, he said:
“China is definitely of interest, it is definitely a target… China is definitely a country and region of interest.”
Fans of the Ripple project who aren’t corporates believe that XRP is just an alternative to Bitcoin which has been embraced by various global banks. This is far from the reality. While it is true that Standard Chartered, UBS, and Santander, among many other global banks, have taken a keen interest in the cryptocurrency, it is quite different from Bitcoin.
The method that XRP uses to validate transactions is similar to that of Bitcoin. However, the nodes comprising the network, in the case of XRP, can’t be run by just about anyone. They have to be selected by the company itself, which centralizes things in the network. The ones who are selected to run validating nodes on the network are often retailers and the banks themselves.
Ripple fans believe that, for using the company’s cross-border payments solution, the XRP token is vital. However, it is nowhere close to being vital since many banks use a Ripple product called xCurrent to carry these payments out without using XRP tokens at all.
Given the state of the cryptocurrencies in China, it is highly unlikely that much can be gained from expanding into China.
Speaking of states, the state of Ripple’s plea isn’t looking good. According to the official document issued and released by the United States District Court, the court has denied Ripple’s plea for remanding the lawsuit against it.
The case has been in the news ever since Ryan Coffey filed a lawsuit against Ripple, Ripple XRP II, and Ripple’s CEO, Brad Garlinghouse. He claimed that he had lost 551.89 USD while he was trading XRP tokens and that he hoped to win the funds from damages caused back. With the help of the lawyer Taylor-Copeland, he filed a class action lawsuit against RIpple Labs Inc accusing the company of violating the US Securities Act along with the Californian Corporation Code. He said that the company is a security and that it is therefore not the decentralized entity it claims to be.
The company partnered up with two prominent former members of the U.S. Securities and Exchange Commission (SEC), the former chair of the SEC, Mary Jo White, and Andrew Ceresney, the former Enforcement Chief after the lawsuit was filed.
Despite all the efforts made by the company, it was unsuccessful in remanding the filing by Coffey to a lower court.